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23 Cards in this Set
- Front
- Back
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Sole Proprietorship
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A business that is owned, and usually managed, by one person.
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Partnership
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A legal form of business with two or more owners
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Corporation
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A legal entity with authority to act and have liability separate from its owners.
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Unlimited Liability
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The responsibility of business owners for all of the debts of the business.
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General Partnership
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A partnership in which all owners share in operating the business and in assuming liability for the business's debts.
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Limited Partnership
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A partnership with one or more general partners and one or more limited partners.
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General Partner
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An owner (partner) who has unlimited liability and is active in managing the firm.
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Limited Partner
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An owner who invests money in teh business but does not have any management responsibilty or liability for losses beyond the investment.
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Master Limited Partnership (MLP)
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A partnership that looks much like a corporation in that it acts like a corporation and is traded on the stock exchanges like a corporation and is traded on the stock exchanges like a corporation, but is taxed like a partnership and thus avoids the corporate income tax.
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Limited Liability Parnership (LLP)
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A partnership that limits partners' risks of losing their personal assets to only their own acts and omissions and to the acts and omissions of people under their supervision.
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S Corporation
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A unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships.
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Limited Liability Company (LLC)
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A company similar to an S Corporation but without the special eligibility requirements.
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What is a MERGER?
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The result of two firms forming one company.
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What is an ACQUISITION?
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A company's purchase of the property and obligations of another company.
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What is a VERTICAL MERGER?
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The joining of two companies involved in different stages of related businesses.
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What is a HORIZONTAL MERGER?
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The joining of two firms in the same industry.
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What is a COMGLOMERATE MERGER?
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The joining of firms in completely unrelated industries.
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What is a LEVERAGED BUYOUT (LBO)
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An attempt by employees, management or a group of investors to purchase an organization primarily through borrowing.
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What is a FRANCHISE AGREEMENT?
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An agreement whereby someone with a good idea for a business sells the rights to use the business name and sell a product or service to others in a given territory.
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What is a FRANCHISER?
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A company that develops a product concept and sells others the rights to make and sell the products.
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What is a FRANCHISE?
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The right to use a specific business's name and sell its products or services in a given territory.
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What is a FRANCHISEE?
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A person who buys a francise.
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What is a COOPERATIVE?
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A business owned and controlled by the people who use it - producers, consumer's or workers with similar needs who pool their resources for mutual gain.
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