Legal Language: Corporate Law

1. The legal responsibility to pay a company’s debts is called __.

2. If the owners or shareholders do NOT have to pay a company’s debts and the company exists as a separate entity, then it is __.

3. If a company is run by one person who is not a separate legal entity and DOES have to personally pay a company’s debts, then that person is called __.

4. If a company is owned by shareholders who are invited to buy a stake in the company and never have to pay for anything more than their original shares, then the company is __.

5. If a company’s shares can be freely sold and traded to the public, then the company is called __.

6. Public companies are required to have a meeting once a year in which directors present the company’s results to its shareholders. This is called  __.

7. If company A owns more than 50% shares of company B, then company A is the __ and company B is its __.

8. If company A owns less than 50% shares of company B, then company B is company A’s __.

9. Formal decisions made by the company, which a certain number of shareholders must vote on in favour to pass, are called __.