1. Types of Business Ownership Vocabulary
Business Law Obj. 5.01
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2. Click on a word below to reveal the definition.
Alien
Corporation
Dissolution
Dividend
Domestic
Foreign
Incorporators
Liquidation
Shareholder
Termination
Merger
Nonprofit
Partnership
Private
Promoter
Public
Share
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3. Alien
A corporation chartered in another nation doing business in the state.
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4. Corporation
a legal entity that is treated as an artificial person by the law. with limited liability of owners.
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5. Dissolution
change in the relationship of the owners that occurs when one owner stops being associated with the business.
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6. Dividend
profit paid through common stock to the shareholders, based on the corporation’s performance.
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7. Domestic
a corporation chartered in a particular state.
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8. Foreign
a corporation that does business in one state but is chartered in another state.
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9. Incorporators
signors of the Articles of Incorporation.
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10. Liquidation
the ending of a corporation.
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11. Merger
the process by which one corporation blends into another existing corporation.
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12. Nonprofit
a corporation organized for a social, charitable, or educational purpose.
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13. Partnership
two or more competent parties combine their money, labor and skills for the purpose of carrying on a lawful business.
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14. Private a corporation established for business or charitable reasons.
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15. Promoter
person who carries out the incorporation process and is personally liable for contracts entered into before the corporation is formed.
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16. Public
a corporation established for governmental purpose.
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17. Share
certain amount of money paid for each single unit of ownership owned.
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18. Shareholder
a person who owns one or more shares of stock.
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19. Termination
ending of a partnership.
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20. Click on a word below to reveal the definition.
Common Stock
Dormant Partner
Fictitious Name
General Partnership
Joint Liability
Joint Venture
Perpetual Life
Preferred Stock
Secret Partner
Silent Partner
Sole Proprietorship
Unlimited Liability
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21. Common Stock
basic form of corporate ownership payable to shareholders as dividends at par or no-par value.
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22. Dormant Partner
is one who is neither known to the public as a partner or active in management.
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23. Fictitious Name
proprietor uses any name but his/her own name (made-up).
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24. General Partnership
one which all the partners assume full personal liability for debts of the firm.
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25. Joint Liability
all the owners of the business must be sued together in the event of a lawsuit.
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26. Joint Venture
partnership in which one or more persons or firms combine their resources to complete one complex project.
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27. Perpetual Life
one major advantage of corporations, which means the corporation can continue indefinitely with new owners.
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28. Preferred Stock
a type of stock that entitles its owner to a stated dividend.
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29. Secret Partner
one who is not known to the public as a partner yet participates in management.
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30. Silent Partner
one who may be known to the public as a partner but takes no active part in management.
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31. Sole Proprietorship
a form of business that is owned and operated by one person.
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32. Unlimited Liability
business owner is responsible for all losses experienced by the business.
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33. Click on a word below to reveal the definition.
Articles of Incorporation
Articles of Partnership
Corporation by Estoppel
De Facto Corporation
Employer Identification Number
De Jure Corporation
Partnership by Estoppel
Partnership by Proof of Existence
Tenancy in Partnership
Uniform Partnership Act (UPA)
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34. Articles of Incorporation
application form from the secretary of state’s office filed for incorporating a business.
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35. Articles of Partnership
a partnership agreement usually expressed (may be written or oral).
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36. Corporation by Estoppel
courts will not allow denial of existence of a corporation when a situation of some party’s willingness to treat a person as a corporation occurs.
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37. De Facto Corporation
does not exist in law but exists in fact.
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38. De Jure Corporation
lawfully exists after all formalities have been completed.
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39. Employer Identification Number
assigned by IRS for income tax purposes when employees are hired.
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40. Partnership by Estoppel
occurs because someone does or says something that leads a third party to believe that a co-ownership exists.
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41. Partnership by Proof of Existence
the way two people conduct their business together.
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42. Tenancy in Partnership
a co-ownership of partnership property.
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43. Uniform Partnership Act (UPA)
the law that governs most business associations of two or more persons.
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