2.01 Types of Businesses Ownership – Flashcards
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Two or more persons to carry on as co-owners of a business for a profit.
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Partnership
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Each stock equals one _______ at the shareholder meeting.
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Vote
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Type of liability in which you can lose all your assets.
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Unlimited
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Entity with the legal authority to act as a single person.
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Corporation
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Partner has an active role, but unknown existence.
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Secret Partner
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Grants permission to sells its products and services as a business.
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Franchise
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Business owned by one person (two words).
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Sole proprietorship
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Partnership formed after they agree to conditions in a contract (two words).
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By agreement
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Type of corporation that benefits the public and receives a tax break.
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Nonprofit
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A bbreviation for a partnership with limited liability.
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LLP
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Partner has no role, but is known to public.
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Silent Partner
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Type of taxation on a corporation.
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Double
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Type of liability in which you only lose your initial investment in the company.
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Limited
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Partner plays no role and is not known to public.
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Dormant partner
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__________ of incorporation.
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Articles
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Formed by a group to gain bargaining power.
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Cooperative
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__________venture is a special project for a limited time.
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Joint
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requires franchisee to sell products or service in a specific format. Example: McDonalds
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Business-format franchise
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allows franchisee to sell specific products. This format is usually formed by automobile, appliance, and petroleum product. Example: Don Flow Honda
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Product-trade franchise
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chartered in a specific state.
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Domestic corporations
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chartered in one state but doing business in another state.
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Foreign corporations
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chartered in another nation but doing business in a state.
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Alien corporations
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established for governmental purposes.
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Public corporations
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established by individuals for business or charitable purposes.
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Private corporations
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plays an active role and has unlimited liability (every partnership must have at least one general partner).
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General partner
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participate as investors and have limited liability.
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Limited Partner
