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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.
Balance Sheet
A statement of assets and liabilities for a given date in time.
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.
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.
Guaranty
A commitment by an individual or a separate business entity to assume another's debt in the event of default.
Proprietorship
A business owned and operated by a single individual. Also referred to as sole proprietorship.
Residual
The value of the leased equipment after the term of the lease has expired.
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).
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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