Card Set Information
A company's attitude and conduct toward its employees, customers, community, and stockholders.
An individual who targets a corporation for takeover because it is undervalued.
A legal entity created by a state, separate and distinct from its owners and managers, having unlimited life, easy transferability of ownership, and limited liability.
The situation in which the actual market price equals the intrinsic value, so investors are indifferent between buying or selling a stock.
The acquisition of a company over the opposition of its management.
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.
A relatively new type of organization that is a hybrid between a partnership and a corporation.
Limited Liability Company (LLC)
Similar to an LLC but used for professional firms in the fields of accounting, law, and architecture. It has limited liability like corporations but is taxed like partnerships.
Limited Liability Partnership (LLP)
An investor whose views determine the actual stock price.
The stock value based on perceived but possibly incorrect information as seen by the marginal investor.
An unincorporated business owned by two or more persons.
An unincorporated business owned by one individual.
A special designation that allows small businesses that meet qualifications to be taxed as if they were a proprietorship or a partnership rather than a corporation.
A law passed by Congress that requires the CEO and CFO to certify that their firm's financial statements are accurate.
The primary goal for managers of publicly owned companies implies that decisions should be made to maximize the long-run value of the firm's common stock.
Shareholder Wealth Maximization