Organizations in Capitalist Economic Systems

A collection of vocabulary flashcards focused on key terms and concepts related to organizations in capitalist economic systems.

Business Firm

An enterprise engaged in commercial activities, ranging from sole proprietorships to corporations.

Sole Proprietorship

A business owned and operated by a single individual.

Partnership

A business structure where two or more individuals share ownership and responsibilities.

Corporation

A legal entity formed by a group of people to act as a single entity, recognized by law.

Doctrine of Incorporation

The principle that allows individuals to form a corporation, creating a separate legal entity.

Freedom of Association

The right of individuals to come together for a common purpose, fundamental to forming corporations.

Privately-owned Corporation

A corporation owned privately, usually with fewer shareholders and more operational privacy.

Publicly-traded Corporation

A corporation whose shares are traded on the stock market and owned by the public.

Crown Corporation

A government-owned corporation that operates independently but is subject to government regulations.

Corporate Governance

The system of rules, practices, and processes that direct and control a company.

Board of Directors

A group elected by shareholders that oversees the corporation's operations.

Shareholders

Individuals or entities that own shares in a corporation and have voting rights.

Non-Profit Organization

An organization that uses its surplus revenues to further its mission instead of distributing profits.

Cooperative (Co-op)

A business owned and operated by a group of individuals for their mutual benefit.

Worker Cooperative

A cooperative owned and self-managed by its workers.

Consumer Cooperative

A cooperative owned by its consumers who use its services.

Mixed Cooperative

A cooperative that incorporates both worker and consumer members.

Corporate Officers

Individuals in charge of the management and operational functions of a corporation.

Ultimate Governing Body

The highest authority within a corporation, typically the Board of Directors.

Fiduciary Obligations

Duties of loyalty and care that managers and directors owe to the corporation and its shareholders.