Forms of Business Organization: Corporations and Related Entities

Vocabulary flashcards covering the characteristics, governance, and types of business organizations including corporations, partnerships, and cooperatives.

Corporation

A form of business organization established by two or more individuals that possesses a legal identity separate and distinct from its owners.

Stockholder (Shareholder)

An owner of a corporation whose personal liability is strictly limited to the value of their invested capital.

Board of Directors

The governing body composed of elected representatives of the stockholders responsible for the systematic leadership and decisions of a corporation.

Separate Legal Personality

The legal attribute of a corporation that empowers it to own property, enter into contracts, and file or be subjected to lawsuits independently of its owners.

Limited Liability

A legal safeguard ensuring that the personal property and assets of a stockholder cannot be pursued to settle corporate debts.

Securities and Exchange Commission (SEC)

The regulatory body where corporations are required to register and regularly submit financial reports.

Stock Corporation

A corporation whose total capital is divided into shares or stocks and whose primary objective is to generate profit for its shareholders.

Non-stock Corporation

A corporation that does not issue shares of stock and whose primary purpose is not the generation of profit.

Philippine Medical Association

An organization housed on North Avenue, Quezon City, presented as an example of a non-stock corporation.

Partnership (Sosyohan)

A business structure where duties, obligations, and tasks are shared among partners, commonly used by accounting firms, law offices, and medical or dental clinics.

Cooperative (Kooperatiba)

An autonomous association owned and controlled by its members, managed through democratic principles for their mutual benefit.