Posts Tagged ‘Separate Legal Entity’

New Terms

Tuesday, August 31st, 2010


Sole Proprietorship - A business firm owned (and usually managed) by a single person who bears full legal liability for the firms debts.

Partnership – A business firm owned by two or more persons, with each person bearing full legal liability for the firm’s debts.

Corporation – A business firm which is a separate legal entity from its owners, or shareholders, each of whose liability is limited to the amount of his or her investment in the firm.

Conglomerate – A group of seemingly unrelated types of corporations controlled in varying degrees by a central management group, through “holding companies” which own shares in those corporations.

Crown Corporation – A corporation owned by a government, being ultimately responsible, through a cabinet minister, to that government.

Proxy – A legal instrument whereby a shareholder’s right to vote at shareholder’s meetings is delegated to another person, either with or without specific instructions as to how that vote will be exercised.

Board of Directors – A group of people elected by the shareholders of a corporation to provide direction to the management of the corporation.

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