Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
16 Cards in this Set
- Front
- Back
Proprietorship
|
An unincorporated business owned by one indiviudal.
|
|
What is a partnership?
|
An unincorporated business owned by two or more persons.
|
|
What is a Corporation?
|
A legal entity created by a state, separate and distinct from its owners and managers, having unlimited life, easy trasnferability of ownership, and limited liability.
|
|
What is a S Corporation?
|
A special designation that allows small businesses that meet qualifications to be taxed proprietorship or partnership rather than as a corporation.
|
|
Stockholder Wealth Maximization?
|
The primary goal for managerial decisions; consider the risk and timing associated with expected earnings per share in order to maximize the price of the firm's common stock.
|
|
Intrinsic Value?
|
An estimate of a stock's "true" value based on accurate risk and return data. The intrinsic value can be estimated but not measured precisely.
|
|
Market Price
|
The stock value based on perceived but possibly incorrect information as seen by the marginal investor.
|
|
Equilibrium
|
The situation in which the actual market price equals the intrinsic value, so investors are indifferent between buying or selling a stock.
|
|
Business Ethics
|
A company's attitude and conduct toward its employees, customers, community, and stockholders
|
|
Corporate Raider
|
An individual who targets a corporation for takeover because it is undervalued.
|
|
Hostile Takeover
|
The acquisition of a company over the opposition of its management.
|
|
Chairman of the Board
|
The person most responsible for the firm's strategic policies.
|
|
Compensation Committee
|
A committee that consists of three outside (nonemployee) directors who set the compensation package for the senior officers.
|
|
Chief Executive Officer (CEO)
|
Heads the management team, and ideally is separate from chairman of the board.
|
|
Chief Operating Officer (COO)
|
In charge of the firm's actual operations.
|
|
Chief Financial Officer (CFO)
|
Responsible for the accounting system, raising capital, and evaluating major investment decisions and the effectiveness of operations.
|