corporations

C corporation

A C corporation is any corporation that does not qualify or elect to be an S corporation under the Internal Revenue Code. A C corporation is a legal structure for a corporation where the company’s assets are separate from the owners’ assets....

call

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...

capital

Capital is any asset used for a productive purpose. It can include tangible items, such as cash or machinery, or intangible items, such as intellectual property or human capital.

Capital can also refer to ways a company...

capital account

A capital account is used in accounting to record individual ownership rights of the owners of a company. The capital account is recorded on the balance sheet and is composed of the following items:

Owner’s capital contributions made...

capital asset

Capital assets are tangible and generally illiquid property which a business intends to use to generate revenue and expects its usefulness to exceed one year. On a balance sheet, capital assets are represented as property, plant, and...

capital expenditure

Capital expenditures (CapEx) are funds used to acquire, upgrade, or maintain capital assets. Capital expenditures are reflected in the cash flow statement, and can be calculated by adding current depreciation with the change in plant,...

capital gains

Capital gains refers to profits gained from the sale of capital assets. Almost everything someone owns and uses for personal or investment purposes is a capital asset. This includes a home, personal-use items like household furnishings,...

capital investment

Capital investments can refer to a business’s acquisition of a capital asset or a type of loan by a financial institution in a business. In the latter, a financial institution, commonly a venture capital group, loans a business money in...

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...

capitalization

Capitalization has different meanings, referring to the allocation of costs in tax and accounting contexts and to capital structures in the corporate context.

In tax and accounting, capitalization allows costs to be...

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