Week 3 Vocab

1. article /ˈɑːr.t ̬ɪ-/  is a piece of writing on a particular subject in a newspaper or magazine.
(http://dictionary.cambridge.org/dictionary/british/article_1?q=article) 
2. articles of incorporation are the primary rules governing the management of a corporation in the United States and Canada, and are filed with a state or other regulatory agency.
(http://en.wikipedia.org/wiki/Articles_of_incorporation)

3. charter  /ˈtʃɑːr.t ̬ɚ/ (n.) is a formal statement of the rights of a country's people, or of an organization or a particular social group, which is agreed by or demanded from a ruler or government. (http://dictionary.cambridge.org/dictionary/british/charter_1?q=charter)


synonym; license (http://thesaurus.com/browse/charter)


4. corporate charter is A written document filed with a U.S. state by the founders of a corporation detailing the major components of a company such as its objectives, its structure and its planned operations. If the charter is approved by the state government, the company becomes a legal corporation.

Also referred to as "charter" and "articles of incorporation".
(http://www.investopedia.com/terms/c/corporatecharter.asp)

5. venture /-tʃɚ/ (n.) is a new activity, usually in business, which involves risk or uncertainty.

(http://dictionary.cambridge.org/dictionary/british/venture_1?q=venture) 

6. joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets. There are other types of companies such as JV limited by guarantee, joint ventures limited by guarantee with partners holding shares.

(http://en.wikipedia.org/wiki/Joint_venture)

7. C corporation  is established with state authorities and must abide by corporate laws in the state where it is incorporated. Experts recommend that small-business owners establish corporations in their home states. Check which agency handles this in your state. The secretary of state's office often registers corporations. To form a C Corporation, you will need to register your business name, file a certificate of incorporation or articles of incorporation and pay a fee. You will also need to draft corporate bylaws 

(http://sbinformation.about.com/od/ownership1/a/ccorporation.htm)

8. S corporation is type of the US corporate structure in which the firm's income is passed through its stockholders (shareholders) in proportion of their investment, and taxed at personal income tax rates. S corporations ('S' stands for 'small') can have only one type of stock and only a limited number of stockholders. Also called subchapter S corporation.

(http://www.businessdictionary.com/definition/S-corporation.html) 

The difference between C corporation and S corporation

Despite their many similarities, S corporations and C corporations also have distinct differences.

• Taxation. Taxation is often considered the most significant difference for small business owners when evaluating S corporations vs. C corporations.
  • C corporations. C corps are separately taxable entities. They file a corporate tax return (Form 1120) and pay taxes at the corporate level. They also face the possibility of double taxation if corporate income is distributed to business owners as dividends, which are considered personal income. Tax on corporate income is paid first at the corporate level and again at the individual level on dividends.
  • S corporations. S corps are pass-through tax entities. They file an informational federal return (Form 1120S), but no income tax is paid at the corporate level. The profits/losses of the business are instead “passed-through” the business and reported on the owners’ personal tax returns. Any tax due is paid at the individual level by the owners.
  • Personal Income Taxes. With both types of corporations, personal income tax is due both on any salary drawn from the corporation and from any dividends received from the corporation.
• Corporate ownership. C corporations have no restrictions on ownership, but S corporations do. S corps are restricted to no more than 100 shareholders, and shareholders must be US citizens/residents. S corporations cannot be owned by C corporations, other S corporations, LLCs, partnerships or many trusts. Also, S corporations can have only one class of stock (disregarding voting rights), while C corporations can have multiple classes. C corporations therefore provide a little more flexibility when starting a business if you plan to grow, expand the ownership or sell your corporation.  

(http://www.bizfilings.com/learn/s-corporation-vs-c-corporation.aspx)


9.  -  There was an interesting article on vegetarianism in the paper yesterday. 
(http://dictionary.cambridge.org/dictionary/british/article_1?q=article) 
     -   She advised us to look abroad for more lucrative business ventures.

There are many joint ventures between American and Japanese companies.

(http://dictionary.cambridge.org/dictionary/british/venture_1?q=venture) 

     -   I have joint venture with shareholder.

    -  The company sets up the articles of incorporation for the employees follow it.

    -  This company have the charter follow the laws.