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Business Entities: Statutes and Practice Materials

Resources for students, bar examinees, and researchers in the law of Business Entities.


Useful Definitions

Articles of Incorporation: A governing document that sets forth the basic terms of a corporation's existence, including the number and classes of shares and the purposes and duration of the corporation.

Corporation: An entity (usually a business) having authority under law to act as a single person distinct from the shareholders who own it and having rights to issue stock and exist indefinitely.

General Partnership: A partnership in which all partners participate fully in running the business and share equally in profits and  losses (though the partners' monetary contributions may vary).

Incorporation: The formation of a legal corporation.

Limited Partnership: A partnership composed of one or more persons who control the business and are personally liable for the partnership's debts (called general partners), and one or more persons who contribute capital and share profits but who cannot manage the business and are liable only for the amount of their contribution (called limited partners). 

Limited Liability Partnership: A partnership in which a partner is not liable for a negligent act committed by another partner or by an employee not under the partner's supervision.

Partnership: A voluntary association of two or more persons who jointly own and carry on a business for profit.

Shareholder: One who owns or holds a share or shares in a company, especially a corporation.

Stock: A proportional part of a corporation's capital represented by the number of equal units (or shares) owned, and granting the holder the right to participate in the company's general management and to share in its net profits or earnings.

All definitions come from Black’s Law Dictionary, 11th ed. (2019).