Types of Business Ownership VocabularyBusiness Law Obj. 5.01

Click Here to Start

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

More Vocabulary

Alien

• A corporation chartered in another nation doing business in the state.

Back

Corporation

• a legal entity that is treated as an artificial person by the law. with limited liability of owners.

Back

Dissolution

• change in the relationship of the owners that occurs when one owner stops being associated with the business.

Back

Dividend

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

Back

Domestic

• a corporation chartered in a particular state.

Back

Foreign

• a corporation that does business in one state but is chartered in another state.

Back

Incorporators

• signors of the Articles of Incorporation.

Back

Liquidation

• the ending of a corporation.

Back

Merger

• the process by which one corporation blends into another existing corporation.

Back

Nonprofit

• a corporation organized for a social, charitable, or educational purpose.

Back

Partnership

• two or more competent parties combine their money, labor and skills for the purpose of carrying on a lawful business.

Back

Private

• a corporation established for business or charitable reasons.

Back

Promoter

• person who carries out the incorporation process and is personally liable for contracts entered into before the corporation is formed.

Back

Public

• a corporation established for governmental purpose.

Back

Share

• certain amount of money paid for each single unit of ownership owned.

Back

Shareholder

• a person who owns one or more shares of stock.

Back

Termination

• ending of a partnership.

Back

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

More Vocabulary

Common Stock

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

Back

Dormant Partner

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

Back

Fictitious Name

• proprietor uses any name but his/her own name (made-up).

Back

General Partnership

• one which all the partners assume full personal liability for debts of the firm.

Back

Joint Liability

• all the owners of the business must be sued together in the event of a lawsuit.

Back

Joint Venture

• partnership in which one or more persons or firms combine their resources to complete one complex project.

Back

Perpetual Life

• one major advantage of corporations, which means the corporation can continue indefinitely with new owners.

Back

Preferred Stock

• a type of stock that entitles its owner to a stated dividend.

Back

Secret Partner

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

Back

Silent Partner

• one who may be known to the public as a partner but takes no active part in management.

Back

Sole Proprietorship

• a form of business that is owned and operated by one person.

Back

Unlimited Liability

• business owner is responsible for all losses experienced by the business.

Back

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)More Vocabulary

Articles of Incorporation

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

Back

Articles of Partnership

• a partnership agreement usually expressed (may be written or oral).

Back

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.

Back

De Facto Corporation

• does not exist in law but exists in fact.

Back

De Jure Corporation

• lawfully exists after all formalities have been completed.

Back

Employer Identification Number

• assigned by IRS for income tax purposes when employees are hired.

Back

Partnership by Estoppel

• occurs because someone does or says something that leads a third party to believe that a co-ownership exists.

Back

Partnership by Proof of Existence

• the way two people conduct their business together.

Back

Tenancy in Partnership

• a co-ownership of partnership property.

Back

Uniform Partnership Act (UPA)

• the law that governs most business associations of two or more persons.

Back