Unit 4, Lesson 1: Types of Business Arrangements – Flashcards
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Sole proprietorship/Proprietorship
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A type of business that has no legal separate existence from its owner.
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Partnership
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In which partners share with each other the profits and losses of the business; Two or more people enter a business arrangement in which they share the profits and the losses of the business.
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Dividend tax
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A tax levied upon profits realized by the owners of a corporation.
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General partnership
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All partners share in managing the business and are personally liable for debts.
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Limited Partnership
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Similar to general partnership except that there is also one or more limited partners.
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Corporation
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A group of people acting as a legal business entity.
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Articles of Incorporation
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A legal document that outlines the general nature of the corporation, the amount of stock it is authorized to issue, and the names and addresses of its directors.
