MGT 315: Ownership and Business Structures Glossary

Board of Directors

a body of persons elected by the stockholders to define and establish corporate policy

Close (Closely Held) Corporation

a corporation in which outstanding shares of stock and managerial control are held by a limited number of stockholders and is not publicly traded

Corporation

a business entity created by statute and owned by stockholders

Domestic Corporation

a business organization that operates in the state that granted the charter

Foreign Corporation

a corporation that operates in a state other than where it is chartered

General Partner

individual actively and openly engaged in the business and held to everyone as a partner

Limited Liability Corporation (LLC)

a business organization that features liability protection and pass-through taxation

Limited Partner

partner whose liability for the firm's debts is limited to the amount of their investment

Partnership

the voluntary association of two or more people as co-owners of a business

Private Corporation

a corporation formed to carry out some non-governmental function

Public Corporation

a corporation formed to carry out government function

Secret Partner

a partner who is active but unknown to the public

Shareholders (Stockholders)

those having title to one or more shares of stock in a corporation; combined, they represent ownership of the corporation

Silent Partner

an individual who takes no active part in the management of a partnership, but has capital invested in the business

Sole Proprietorship

a business owned by one person, who is personally subject to claims of creditors

Subchapter S Corporation

business organization in which shareholders are taxed as a partnership (no double taxation) without losing corporation status