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16 Cards in this Set
- Front
- Back
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A business |
An activity that seeks to provide goods and services to others, in exchange for money, while operating at a profit |
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Non-profit |
An organization whose goals do not include making a personal profit for its shareholders |
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3 forms of business ownership |
- Sole Proprietorships - Partnerships - Corporations |
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Why does it matter what type of form of business ownership are? |
- Source of money - Types of taxes - Liability |
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Sole Proprietorship |
A business owned, and usually managed, by one person |
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Sole Proprietorships Advantages List 3 |
- Ease start to end - Be your own boss - No special taxes |
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Sole Proprietorship disadvantages |
- Unlimited liabilty - Limited financial resources - Limited growth
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Partnerships Also list 3 types of Partnership |
A legal form of business with two or more parties. - General Partnerships - Limited Partnerships - Limited Liability Partnerships |
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General Partner |
An owner who has unlimited liabiliy and is active in managing the firm |
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Limited Partnership |
An owner invests money in the business but does not have any management responsibilities |
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Limited liability Partnership |
An partnership that limits disadvantages of unlimited liability |
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Partnership Advantages |
- more financial resources - shared management - longer survival |
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Partnership Disadvantages |
- unlimited liability - disagreement among partners - difficult to terminate |
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Corporation Advantages |
- more money for investment - limited liability - seperation of ownership |
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Corporation Disadvantages |
- initial start up cost - paperwork - termination difficult |
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Corporations |
A federally, or provincially, chartered legal entity with authority to act and have liability separate from its owners |
