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18 Cards in this Set

  • Front
  • Back
one who initiates and assumes the financial risks of a new enterprise and undertakes to provide or control its management
sole proprietorship
the simplest form of business, in which the owner is the business; the owner reports business income on his or her personal income tax return and is legally responsible for all debts and obligations incurred by the business
an agreement by two or more persons to carry on, as co-owners, a business for profit
limited partnership
a partnership consisting of one or more general partners (who manage the business and are laible to the full extent of their personal assets for debts of the partnership) and one or more limited partners (who contribute only assets and are liable only up to the amount contributed by them)
general partner
in a limited partnership, a partner who assumes responsibility for the management of the partnership and liability for all partnership debts
limited partner
in a limited partnership, a partner who contributes capital to the partnership but has no right to participate in the manangemtn and operation of the business. The limited partner assumes no liability for partnership debts beyond the capital contributed
a legal entity formed in compliance with statutory requirements. The entity is distinct from its shareholder-owners
limited liability company (LLC)
a hybrid form of business enterprise that offers the limited liability of the corporation but the tax advantages of a partnership
operating agreement
in a limited liability company, an agreement in which the members set forth the details of how the business will be managed and operated. State statutes typically give the members wide latitude in deciding for themselves the rules that will govern their organization
limited liability partnership (LLP)
a business organization form that is similar to the LLC but that is designed more for professionals who normally do business as partners in a partnership. The LLP is a pass through entity for tax purposes, like the general partnership, but it limits the personal liability of the partners
joint venture
a joint undertaking of a specific commercial enterprise by an association of persons. A joint venture is normally not a legal entity and is treated like a partnership for federal income tax purposes
an investment group of persons or firms brought together for the purpose of financing a project that they would not or could not undertake independently
joint stock company
a hybrid form of business organization that combines characteristics of a corporation and a partnership. Usually, the joint stock company is regarded as a partnership for tax and other legally related purposes
business trust
a form of business organization in which investors, (trust beneficiaries) transfer cash or property to trustees in exchange for trust certificates that represent their investment shares. The certificate holders share in the trust's profits but have limited liability
an association, which may or may not be incorporated, that is organized to provide an economic service to its members
any arrangement in which the owner or a trademark, trade name, or copyright licenses another to use the trademark, trade name, or copyright in the selling of goods and services
one receiving a license to use another's (the franchisor) trademark, trade name, or copyright in the sale of goods and services
one licensing another (the franchisee) to use his or her trademark, trade name, or copyright in the sale of goods or services