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24 Cards in this Set
- Front
- Back
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 responsbility 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 the business but does not have any management responsibility or liability for losses beyond the investment.
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Limited Liability
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The responsibility of a business's owners for losses only up the amount they invest; limited partners and shareholders have limited liability.
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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 a stock exchange) but is taxed like a partnership and thus avoids the corporate income tax.
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Limited Liability Partnership (LLP)
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A partnership that limits partners' risk of losing their personal assets to only their own oacts and omissions and to the acts and omissions of people under their supervision.
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Conventional (C) Corporation
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A state-chartered legal entity with authority to act and have the liability separate from its owners.
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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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Merger
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The result of two firms forming one company.
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Acquisition
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One company's purchase of the property and obligations of another company.
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Vertical merger
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The joining of two companies involved in different stages of related businesses.
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Horizontal merger
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The joining of two firms in the same industry.
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Conglomerate merger
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The joining of firms in completely unrelated industries.
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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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Franchise agreement
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An arragnement whereby someone with 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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Franchisor
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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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Franchisee
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A person who buys a franchise.
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Cooperative
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A business owned and controlled by the people who use it - producers, consumers, or workers with silimar needs who pool their resources for mutual gain.
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