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Starting a business from scratch rather than buying an existing company means that the owner has more control over all aspects of the company's organization, structure, and strategy. This can be both a major advantage and a major disadvantage.
Preferred Stock
A class of ownership in a corporation with a higher claim on assets and earnings than common stock, typically with predetermined dividend payments.
Dividends
Dividends are distributions of a portion of a company's earnings decided by the board of directors to its shareholders.
Authorized Shares
The maximum number of shares that a corporation is legally permitted to issue, as stated in its articles of incorporation.
Corporation
A legal entity separate from its owners, with its own rights and liabilities, capable of conducting business.
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