Organizing the Business: Corporations

These flashcards cover key concepts related to the formation and structure of corporations, including definitions of important terms.

Corporation

A legal entity created by an act of law to own and operate a business.

Incorporators

The individuals who create a corporation.

Articles of Incorporation

The document that provides basic information that must be submitted to create a corporation.

Certificate of Incorporation

The government authorization that a corporation has been created and can conduct business under its own name.

Shareholder

Any individual or organization who owns one or more shares in a corporation.

Limited Liability

An individual's financial responsibility for a business is limited to the amount of capital they have provided.

Board of Directors

The group elected by the shareholders of a corporation to represent their interests and administer the affairs of the corporation.

Officer

An individual who holds a management position within a corporation.

Private Corporation

A corporation owned by a small group of closely connected shareholders that does not intend to offer shares to the wider public.

Public Corporation

A corporation that makes its shares available for sale to the general public.