Business Law

1. Business Law 5.01 Vocabulary

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

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

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

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

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

7. 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.

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

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

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

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

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

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

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

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

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

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

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

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

20. joint venture • —partnership in which one or more persons or firms combine their resources to complete onecomplexproject.

21. Liquidation • —the ending of a corporation.

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

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

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

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

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

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

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

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

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

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

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

33. Share • – certain amount of moneypaid for each single unit of ownership owned.

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

35. silent partner • —one who may be known to the public as a partner but takes noactivepart in management.

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

37. Tenancy in partnership • —aco-ownership of partnership property.

38. Termination • —ending of a partnership.

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

40. unlimited liability • – business owner is responsible for alllosses experienced by the business.