1. Business Law 5.01 Vocabulary

2. Alien Corporation nationstate A corporation chartered in another nation doing business in the state.

3. Articles of Incorporation incorporating application form from the secretary of state’s office filed for incorporating a business.

4. Articles of Partnership express a partnership agreement usually express (may be written or oral)

5. Common Stock ownership dividends basic form of corporate ownership payable to shareholders as dividends at par or no-par value.

6. Corporation entity artificialperson limitedliability - a legal entity that is treated as an artificial person by the law. with limited liability of owners

7. Corporation by Estoppel denial treat 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.

8. de facto corporation law fact – does not exist in law but exists in fact.

9. de jure corporation formalities lawfully exists after all formalities have been completed.

10. Dissolution change stopsbeingassociated – change in the relationship of the owners that occurs when one owner stops being associated with the business.

11. Dividend profit performance – profit paid through common stock to the shareholders, based on the corporation’s performance.

12. Domestic Corporation state —a corporation chartered in a particular state.

13. dormant partner known active —is one who is neither known to the public as a partner or active in management.

14. employer identification number IRStax hired – assigned by IRS for income tax purposes when employees are hired.

15. fictitious name ownname – proprietor uses any name but his/her own name (made-up).

16. Foreign doesbusiness chartered —a corporation that does business in one state but is chartered in another state.

17. general partnership personalliability —one which all the partners assume full personal liability for debts of the firm.

18. Incorporators signors —signors of the Articles of Incorporation.

19. joint liability suedtogether –all the owners of the business must be sued together in the event of a lawsuit.

20. joint venture combine onecomplex project —partnership in which one or more persons or firms combine their resources to complete one complex project.

21. Liquidation ending —the ending of a corporation.

22. Merger blends — the process by which one corporation blends into another existing corporation.

23. Nonprofit social charitableeducational —a corporation organized for a social, charitable, or educational purpose.

24. partnership by estoppel leadsthirdparty co-ownership – occurs because someone does or says something that leads a third party to believe that a co-ownership exists.

25. partnership by proof of existence two – the way two people conduct their business together.

26. partnership (general) combinemoneylabor skills – two or more competent parties combine their money, labor and skills for the purpose of carrying on a lawful business.

27. perpetual life corporation indefinitely —one major advantage of corporations, which means the corporation can continue indefinitely with new owners.

28. preferred stock stated —a type of stock that entitles its owner to a stated dividend.

29. Private businesscharitable —a corporation established for business or charitable reasons.

30. Promoter incorporationprocess liable – person who carries out the incorporation process and is personally liable for contracts entered into before the corporation is formed.

31. Public governmental —a corporation established for governmental purpose.

32. secret partner public management —one who is not known to the public as a partner yet participates in management.

33. Share moneypaid unitownership – certain amount of money paid for each single unit of ownership owned.

34. Shareholder owns shares —a person who owns one or more shares of stock.

35. silent partner known noactivepart —one who may be known to the public as a partner but takes no active part in management.

36. sole proprietorship one – a form of business that is owned and operated by one person

37. Tenancy in partnership co-ownership —a co-ownership of partnership property.

38. Termination ending —ending of a partnership.

39. Uniform Partnership Act law twomore (UPA) – the law that governs most business associations of two or more persons.

40. unlimited liability responsibleall losses – business owner is responsible for all losses experienced by the business.