business organizations

C Corporation


Any corporation that does not qualify and elect to be an S corporation under the Internal Revenue Code. Unlike S corporations, C corporations must always pay income taxes directly to the federal government.

See 26 U.S.C. § 11 and 26 U...


Call generally means to request or to use an option. Call has a few different meanings that arise in the legal context:

A person “calls” an option when they choose to use a call option for buying an asset. The person gets to buy a...


The available assets of a business, including liquid assets (cash) and/or physical assets (machinery, buildings, and equipment).

Capital Account

A shareholder's or owner's account indicating the individual owner's investment plus net income from business operations, minus any net losses from operations, and minus any withdrawals of funds by the owner for personal use.

Capital Asset

Tangible and generally illiquid property used by a business to generate profit, such as equipment and buildings. The usefulness of the asset is expected to extend beyond one year.

Capital Expenditure

Known as CAPEX, capital expenditures describe funds used by a business to upgrade or acquire new physical assets, such as tools and other equipment, for the purpose of attaining future benefits. In the accounting context, capital expenditures are...

Capital Stock

Capital stock, also known as authorized stock, refers to all common stock and preferred stock a corporation is legally allowed to issue. A corporation’s charter establishes the amount of shares the corporation may issue, and the board of...


1) In the accounting context, it is where a cost is recorded as a a price of the asset rather than as an expenditure.

2) In the corporate context, it is a firm's "invested capital," meaning the business' corporate stock plus long-term debt plus...

Capitalized Value

Capitalized value is the current worth of an asset, usually real estate, based on a calculation of expected income from the asset over the course of its economic lifespan. Capitalized value is a useful tool for investors to decide whether an...

Carrying on Business

Carrying on business is to perform activities for a business organization such as a partnership or corporation with the purpose of making a profit. The concept is used in a few different ways such as:

A trustee may have a legal duty of...