Business Law

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Business Law

• 5.01
• Vocabulary

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Alien Corporation

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

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Articles of Incorporation

• application form from the secretary of states
  office filed for incorporating a business.

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Articles of Partnership

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

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Common Stock

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

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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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Corporation by Estoppel

• courts will not allow denial of existence of a
  corporation when a situation of some partys
  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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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 corporations
  performance.

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Domestic Corporation

• a corporation chartered in a particular state.

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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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employer identification number

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

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fictitious name

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

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Foreign

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

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general partnership

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

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Incorporators

• signors of the Articles of Incorporation.

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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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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 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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partnership (general)

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

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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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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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secret partner

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

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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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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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Tenancy in partnership

• a co-ownership of partnership property.

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Termination

• ending of a partnership.

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Uniform Partnership Act

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

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unlimited liability

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