Chapter 5 Vocabulary

Chapter 5 Vocabulary - Chapter 5 Firms the Stock Market and...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 5: Firms, the Stock Market, and Corporate Governance 1. Sole proprietorship: A firm owned by a single individual and not organized as a corporation. 2. Partnership: A firm owned jointly by two or more persons and not organized as a corporation 3. Corporation: A legal form of business that provides owners with protection from losing more than their investment should the business fail 4. Asset: Anything of value owned by a person or a firm 5. Limited Liability: The legal provision that shields owners of a corporation from losing more than they have invested in the firm 6. Separation of ownership from control: A situation in a corporation in which the top management, rather than the shareholders, control day-to-day operations 7. Principal-agent problem: A problem caused by an agent pursuing his own interests rather than the interest of the principal who hired him 8. Indirect finance: A flow of funds from savers to borrowers through financial intermediaries such as banks. Intermediaries raise funds from
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern