Types of Business
Ownership Vocabulary
Business Law Obj. 5.01
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Click on a word below to reveal the definition.
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Alien
Corporation
Dissolution
Dividend
Domestic
Foreign
Incorporators
Liquidation
Shareholder
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Termination
Merger
Nonprofit
Partnership
Private
Promoter
Public
Share
More Vocabulary
Alien
• A corporation chartered in another
nation doing business in the state.
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Corporation
• a legal entity that is treated as an
artificial person by the law. with limited
liability of owners.
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Dissolution
• change in the relationship of the owners
that occurs when one owner stops
being associated with the business.
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Dividend
• profit paid through common stock to the
shareholders, based on the
corporation’s performance.
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Domestic
• a corporation chartered in a particular
state.
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Foreign
• a corporation that does business in one
state but is chartered in another state.
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Incorporators
• signors of the Articles of Incorporation.
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Liquidation
• the ending of a corporation.
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Merger
• the process by which one corporation
blends into another existing corporation.
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Nonprofit
• a corporation organized for a social,
charitable, or educational purpose.
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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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Private
• a corporation established for business
or charitable reasons.
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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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Public
• a corporation established for
governmental purpose.
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Share
• certain amount of money paid for each
single unit of ownership owned.
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Shareholder
• a person who owns one or more shares
of stock.
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Termination
• ending of a partnership.
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Click on a word below to reveal the definition.
• Common Stock
• Perpetual Life
• Dormant Partner
• Preferred Stock
• Fictitious Name
• Secret Partner
• General
Partnership
• Silent Partner
• Joint Liability
• Sole Proprietorship
• Unlimited Liability
• Joint Venture
More Vocabulary
Common Stock
• basic form of corporate ownership
payable to shareholders as dividends at
par or no-par value.
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Dormant Partner
• is one who is neither known to the
public as a partner or active in
management.
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Fictitious Name
• proprietor uses any name but his/her
own name (made-up).
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General Partnership
• one which all the partners assume full
personal liability for debts of the firm.
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Joint Liability
• all the owners of the business must be
sued together in the event of a lawsuit.
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Joint Venture
• partnership in which one or more
persons or firms combine their
resources to complete one complex
project.
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Perpetual Life
• one major advantage of corporations,
which means the corporation can
continue indefinitely with new owners.
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Preferred Stock
• a type of stock that entitles its owner to
a stated dividend.
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Secret Partner
• one who is not known to the public as a
partner yet participates in management.
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Silent Partner
• one who may be known to the public as
a partner but takes no active part in
management.
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Sole Proprietorship
• a form of business that is owned and
operated by one person.
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Unlimited Liability
• business owner is responsible for all
losses experienced by the business.
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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.
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Articles of Partnership
• a partnership agreement usually
expressed (may be written or oral).
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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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De Facto Corporation
• does not exist in law but exists in fact.
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De Jure Corporation
• lawfully exists after all formalities have
been completed.
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Employer Identification Number
• assigned by IRS for income tax
purposes when employees are hired.
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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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Partnership by Proof of Existence
• the way two people conduct their
business together.
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Tenancy in Partnership
• a co-ownership of partnership property.
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Uniform Partnership Act (UPA)
• the law that governs most business
associations of two or more persons.
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