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Articles of Incorporation.
A document that must
be filed with a state in order to incorporate. Among
the things its must include are: the name and
address of the corporation, the corporation's
general purpose, and the number and types of shares
of stock to be issued. |
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Balance Sheet.
A statement of assets
and liabilities for a given date in time. |
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Corporation.
A fictitious legal
entity/person which has rights and duties
independent of the rights and duties of real
persons, and which is legally authorized to act in
its own name through daily appointed agents. It is
owned by shareholders, and is usually created under
the authority of state law. |
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General Partnership.
A business entity
that is composed of two or more partners. The acts
of each partner fully bind the firm. Each partner is
liable for any debt, and the personal assets of any
or all partners may be used to satisfy business
obligations. |
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Guaranty.
A commitment by an
individual or a separate business entity to assume
another's debt in the event of default. |
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Proprietorship.
A business owned and
operated by a single individual. Also referred to as
sole proprietorship. |
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Residual.
The value of the
leased equipment after the term of the lease has
expired. |
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Sales Tax.
Tax levied by the
state, city, and/or county in which the equipment is
to be located. It may be assessed "up-front" (based
on either the cost of goods or the cost of the
contract) or "monthly" (based on the monthly lease
payment). |
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Secured Party.
A legal document in
which the borrower grants a security interest in
specified assets as guaranty of prompt payments. |
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