Finance - Chapter 2 OpenStax Flashcards

Front

A principle used to explain and resolve issues in the relationship between business principals and their agents, most commonly between shareholders (principals) and company executives (agents).

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Agency Theory

Front

A person who acts on behalf of another person or group.

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Agent

Front

A meeting of the general membership and shareholders of a corporation; also known as an Annual General Meeting (AGM).

Back

Annual Meeting

Front

A document describing a public corporation’s operations and financial condition that must be provided to shareholders once per year; also known as Securities and Exchange Commission (SEC) Form 10-K.

Back

Annual Report

Front

A set of formal documents filed with a government body to legally document the creation of a corporation.

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Articles of Incorporation

Front

A group of people who jointly supervise the activities of an organization.

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Board of Directors (BOD)

Front

A legal structure for a corporation in which the owners, or shareholders, are taxed separately from the entity.

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C Corporation

Front

A company that has only a limited number of shareholders.

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Close (Closely Held) Corporation

Front

A meeting or presentation conducted via telephone or internet to relay company information to all interested parties, including institutional and individual investors, as well as buy-and-sell side analysts; also known as an earnings conference call.

Back

Conference Call

Front

The system of rules, practices, and processes by which a firm is directed and controlled.

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Corporate Governance