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Corporate Law

Browse 26 glossary entries in the Corporate Law category, with short plain-English descriptions and direct links to the full term pages.

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acquisition

Acquisition is like getting a hall pass to join another group.

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annual report

Think of it like a report card given out at the end of the school year, showing all your grades.

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authorized officer

Like a hall pass from the principal, an authorized officer has the school's permission to make binding decisions.

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board

A board functions like the committee that approves your permission slip; they decide if you can go play outside and what rules you must follow whil...

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board of directors

Think of the board like the principal at your school; they don't teach all the classes, but they make sure the whole school runs properly according...

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board of governors

The board of governors is like the principal at a school; they make the big decisions for everyone else.

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books

Books are like a permission slip that shows you finished your chores; if they aren't filled out right, the teacher (the court) might deny you recess.

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branch

It acts like a permission slip for a big company; it lets one small shop act on behalf of the entire corporation.

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by-laws

A by-law is like the rule sheet for your class: it tells you when recess starts, who can be president, and how many points win the game.

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bylaws

Think of bylaws as the classroom rule book; they tell everyone when recess starts and who gets to be line leader.

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capital

Capital is like your allowance money; it's what you use to buy things that help you grow, whether it’s buying a new toy (tangible) or learning a sk...

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capital account

Imagine getting an allowance for chores; your capital account is like tracking that money in a special jar.

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capital stock

Think of capital stock like the maximum number of tickets printed for a concert; even if only 50 are sold, the venue still has room for thousands m...

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chairman

Think of the chairman like the teacher in class; when they call your name, you have to answer promptly.

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duly authorized

A teacher signs a field trip permission slip because the principal gave them the specific power to do so, just like a manager signing a contract fo...

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joint venture

Think of a joint venture like two kids sharing a single library book; they each promise to take care of it and split any late fees together.

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limited liability

Limited liability is like having a permission slip for your friend’s birthday party; even if they break something expensive, you only have to pay u...

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limited liability company

It functions like a special permission slip for your business.

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limited partnership

Think of it like a permission slip: the parents sign off on the main activities, but the kid just pays for the field trip without running the whole...

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managing director

The managing director is like the teacher who gets to decide which recess rules apply for the whole school.

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managing member

Think of it like being given permission slips for every class at school.

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member

A member is like someone who gets a permission slip for a club.

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merger

It's like when you promise your friend you will be at their house (Entity A) and they move into yours (Entity B).

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non-controlling

It’s like having one ticket into the school dance; you get to go and enjoy it, but you can't force everyone else to wear matching shoes.

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operating agreement

Think of it like the rule book for your playdate; it tells everyone who gets to pick the game and how many turns they get before you have to switch...

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parent company

Think of it like a big company (the parent) signing permission slips for its little businesses (subsidiaries).

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Understand the agreement before you sign it.

Review risky clauses in plain English, fix the document, and keep it moving toward signature.

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