Chapter 6 Vocabulary PPT

8/12/2019 Chapter 6 Vocabulary PPT

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Chapter 6 Vocabulary

By Daniela Lopez

Period 2


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Corporation

Definition: a business ownedby a group of people and

authorized by the state in

which it is located to act as

though it were a single

person, separate from itsowners.

Example: Walmart.


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Charter

Definition: The official documentthrough which a state grants the

power to operate as a corporation.

Example: None available.


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Stockholders

Definition: Owners of a corporation.

Example: Dustin Moskovitz (Facebook

shareholder).


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Shares

Definition: Equal parts of the division of ownecorporation.

Example: None available.


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Dividends

Definition: Dividends are profits thatare distributed to stockholders on a

per-share basis.

Example: When a corporation earns a

profit or surplus, it can either reinvest

it in the business (called retained

earnings), or it can distribute it to

shareholders.


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Board of directors

Definition: The ruling body of the corporation

Example: The Facebook, Inc. Board of Directo


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Officers

Definition: The top executives who are hired tmanage the business.

Example: A president, a secretary, and a treas


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Capital stock

Definition: The general term applied to the shownership of a corporation.

Example: The example written in the textboo

about 3 business partners (York, Burton, and C

They asked the state they lived in for authoriz

issue a million dollars in capital stock.


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Proxy

Definition: A written authorization for someonvote on behalf of the person signing the proxy

Example:


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Close corporation

Definition: One that does not offer its shares ofor public sale.

Example: York, Burton, and Chan, Inc., is an e

of a close corporation. The three former partn

all the stock and operate the business as well.


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Open corporation

Definition: One that offers its shares of stock public sale.

Example: Facebook, Inc.


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Prospectus

Definition: A formal summary of the chief featthe business and its stock offering.

Example:


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Joint venture

Definition: An agreement among two or more

businesses to work together to provide a good

service.

Example: Sony Ericsson.


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Virtual corporation

Definition: A network of companies that form alliances

among themselves as needed to take advantage of fast-changing market conditions.

Example: Nike, the worlds largest athletic shoe and

sports apparel company, is a virtual corporation. Nike

manufactures and markets its products worldwide. A large

network of Asian companies purchase materials andmanufacture shoes and other apparel products in

countries such as China, Taiwan, Indonesia, and Korea.


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Non-profit corporation

Definition:An organization that does not pay t

does not exist to make a profit.

Example: Organizations that manage cities or

schools are examples of nonprofit corporation


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Quasi-public corporation

Definition: A business that is important to soci

lacks the profit potential to attract private inv

often operated by local, state, or federal gove

Government financial support (called a subsidy

also be required. This type of business is usual

described as a quasi-public corporation. Example: The Tennessee Valley Authority.


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Cooperative

Definition: A business owned and operated by

members for the purpose of supplying themse

goods and services.

Example: Organic Meadow Cooperative.

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