| A | B |
|---|
| Corporations | Legally distinct from their owners and are treated as if they were individuals. |
| Articles of Incorporation | Reviewed by state officials has 6 major pieces of information needed to setup a corporation |
| Corporate charter | Permits the formation of the new corporation. |
| Board of directors | The decision-making body. |
| Stock | Used to raise funds by corporations and it represents ownership of the firm. |
| Shares | Ownership issued in portions. |
| Dividends | Profits paid to a shareholder. |
| Common stock | Provides a voice in how the company is run and share in any potential dividends. |
| Preferred stock | Provides guaranteed dividends-paid before any received by holders of common stock-doesn’t grant a voice in running the corporation |
| Corporate bond | Is a certificate issued by a corporation in exchange for money borrowed from an investor. |
| Principal | Actual amount of money borrowed. |
| Interest | The amount borrower must pay for using the money. |
