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20 Cards in this Set
- Front
- Back
The purchase if a company by another, larger firm, which absorbs the smaller company into its operations.
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Acquisition
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A group of individuals elected by a firm's shareholders and charged with overseeing, and taking legal responsibility for the firm's actions.
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Board of Directors
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Document in which the entrepreneur summarizes her or his business strategy for the proposed new venture and how that strategy will be implemented.
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Business Plan
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The person responsible for the firm's overall performance.
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Chief executive officer
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An organization that is formed to benefit its owners in the form or reduced prices and the distribution of surpluses at year-end.
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Co-operative
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Shares whose owners usually have last claim on the corporation's assets but have voting rights in the firm.
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Common stock
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A merger of two firms in completely unrelated businesses.
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Conglomerate merger
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A business considered by law to be a legal entity separate from its owners with many of the legal rights and priveledges of a person; a form of business organization in which the liability of the owners is limited to their investment in the firm.
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Corporation
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Occurs when a company sells part of its existing business operations to another company.
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Divestiture
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A corporation must pay taxes on its profits, and the shareholders must pay personal income taxes on the dividends they receive.
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Double taxation
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An arrangement whereby a corporation buys its own stock with loaned funds and holds it in trust for its employees.
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ESOP employee stock ownership plan
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A business person who accepts both the risks and the opportunities involved in creating and operating a new business venture.
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Entrepreneur
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An arrangement that gives the franchisees (buyers) the right to sell the product of the franchiser (the seller)
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Franchise
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Stipulates the duties and responsibilities of the franchisee and the franchiser.
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Franchising agreement
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An acquisition in which the management of the acquired company welcomes the firm's buyout by another company.
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Friendly takeover
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A partner who is actively involved in managing the firm and has unlimited liability.
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General partner
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A merger of two firms that have previously been direct competitors in the same industry.
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Horizontal merger
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An acquisition in which the management of the acquired company fights the firm's buyout by another company.
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Hostile takeover
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Selling shares of stock in a company for the first time to the general investing public.
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IPO initial public offering
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Members of the corporation's board of directors who are also full-time employess of the corporation.
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Inside directors
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