Business and Corporations Vocabulary

Vocabulary flashcards based on lecture notes.

Corporation

An imaginary friend or useful tool that allows for resource gathering, risk encouragement, and configuration of resources.

Board of Directors

Legally responsible for the firm's conduct.

Shareholder Primacy

The concept that corporations should prioritize the interests of their shareholders.

Residual Claimer

Shareholders are last in line structurally if the company fails.

Stakeholder Approach

Corporations are dependent on these individuals or groups for their survival and should look after their interests.

Stakeholders

Executives should maximize value for these individuals or groups but there are often trade offs

Secondary Market

A higher price for a company's shares in this market is seen as positive.