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9 Cards in this Set
- Front
- Back
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Sole proprietorship
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business owned by one person
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employer identification
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assigned by the internal Revenue service, and the Gov. uses the number for income tax purposes
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unlimited liability
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this responsibility means that if the business owes money you may have to pay the debt out of your personal assets
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limited life
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when the owner leaves the business or dies the business ceases to exist
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partnership
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business owned by two or more people
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partnership agreement
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written document basically states the partnership will be organized
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General partners
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have decision making authorities usually take an active role in operation of business and have unlimited liability for all losses or debts of partnership
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Agency power
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any partner has the right to sign contracts that are legally binding on partnership
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Limited partners
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rarely take an active role in decision making or in running the business
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