BA 11 Chapter 4 (Forms of Business Ownership)

alien corporation

companies from abroad (ex. Sony, BMW)

foreign corporation

a corporation that is in all states other than the "home state"

domestic corporation

call this in the state where it is incorporation (in its "home state")

open corporation

the stocks of the corporation is brought and solid publicly; stocks from a companies that can be traded on the stock market

closed corporation

owned by a few people and is not sold to the public

stockholder/shareholder

owners of parts of a corporation

limited liability

financial liability is the price paid for the stock (only liable for the amount they invested)

limited partner

contributes to capital only; doesn't have a say in management issues (is not liable beyond the amount that they have invested)

general partner

co-owns the business and share liability for everything the business does

unlimited liability

the owner is personally responsible for all debt of the business (sole proprietorship)