Types of Companies

Sole Proprietorship: A company owned and operated by one individual, with unlimited personal liability.
Partnership: A company owned and operated by two or more individuals, with unlimited personal liability.
Limited Liability Company (LLC): A company that offers limited personal liability to its owners, with flexibility in ownership structure and management.
Corporation: A company that is a separate legal entity, with limited personal liability to its shareholders, and a more formal management structure.

Incorporation: The process of forming a company, which involves filing articles of incorporation with the state government.
Articles of Incorporation: A document that contains basic information about the company, such as its name, purpose, and structure.
Bylaws: A document that outlines the rules and procedures for the company's internal management and operation.

Shareholders: Owners of the company who have a claim on its assets and profits.
Board of Directors: A group of individuals elected by the shareholders to oversee the company's management and make major decisions.
Officers: Individuals appointed by the board of directors to manage the company's day-to-day operations.
Management: The team responsible for the company's daily operations and decision-making.

Equity Financing: Raising capital by issuing shares of stock to investors.
Debt Financing: Raising capital by borrowing money from creditors, such as banks or bondholders.
IPO (Initial Public Offering): The first public sale of a company's stock, which allows it to raise capital and become a publicly traded company.

Corporate Governance: The system of rules, practices, and processes by which a company is directed and controlled.
Fiduciary Duty: The legal obligation of directors and officers to act in the best interests of the company and its shareholders.
Duty of Care: The legal obligation of directors and officers to exercise reasonable care and diligence in their decision-making.

Insolvency: A situation where a company is unable to pay its debts as they come due.
Bankruptcy: A legal process where a company's assets are liquidated and distributed to creditors.
Receivership: A process where a court-appointed receiver takes control of a company's assets and operations to manage its insolvency.

A Sole Proprietorship is a company owned and operated by one individual, with unlimited personal liability.
A Partnership is a company owned and operated by two or more individuals, with unlimited personal liability.
A Limited Liability Company (LLC) offers limited personal liability to its owners, with flexibility in ownership structure and management.
A Corporation is a separate legal entity, with limited personal liability to its shareholders, and a more formal management structure.

Incorporation is the process of forming a company, involving filing articles of incorporation with the state government.
Articles of Incorporation contain basic information about the company, such as its name, purpose, and structure.
Bylaws outline the rules and procedures for the company's internal management and operation.

Shareholders are owners of the company who have a claim on its assets and profits.
The Board of Directors is a group of individuals elected by the shareholders to oversee the company's management and make major decisions.
Officers are individuals appointed by the board of directors to manage the company's day-to-day operations.
The Management team is responsible for the company's daily operations and decision-making.

Equity Financing raises capital by issuing shares of stock to investors.
Debt Financing raises capital by borrowing money from creditors, such as banks or bondholders.
An Initial Public Offering (IPO) is the first public sale of a company's stock, allowing it to raise capital and become a publicly traded company.

Corporate Governance is the system of rules, practices, and processes by which a company is directed and controlled.
Fiduciary Duty is the legal obligation of directors and officers to act in the best interests of the company and its shareholders.
Duty of Care is the legal obligation of directors and officers to exercise reasonable care and diligence in their decision-making.

Insolvency occurs when a company is unable to pay its debts as they come due.
Bankruptcy is a legal process where a company's assets are liquidated and distributed to creditors.
Receivership is a process where a court-appointed receiver takes control of a company's assets and operations to manage its insolvency.