Card Set Information
Ch5 terms for BUS 130
One company's purchase of the property and obligations of another company.
The joining of firms in completely unrelated industries.
Conventional (C) Corporation
A state-chartered legal entity with authority to act and have liability separate from its owners.
A business owned and controlled by the people who use it' producers, consumers, or workers with similar needs who pool their resources for mutual gain.
A legal entity with authority to act and have liability separate from its owners.
The right to use a specific business's name and sell its products or services in a given territory.
An arrangement 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.
A person who buys a franchise.
A company that develops a product concept and sells others the rights to make and sell the products.
An owner (partner) who has unlimited liability and is active in managing the firm.
A partnership in which all owners share in operating the business and in assuming liability for the business's debts.
The joining of two firms in the same industry.
Leveraged buyout (LBO)
An attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing.
The responsibility of a business's owners for losses only up to the amount they invest; limited partners and shareholders have limited liability.
Limited liability Company (LLC)
A company similar to an S corporation but without the special eligibility requirements.
Limited liability partnership (LLP)
A partnership that limits partners' risk of losing their personal assets to only their own acts and omissions and to the acts and omissions of people under their supervision.
An owner who invests money in the business but does not have any management responsibility or liability for losses beyond the investment.
A partnership with one or more general partners and one or more limited partners.
Master limited partnership (MLP)
A partnership that looks much like a corporation (in that is acts like a corporation and is traded on a stock exchange) but is taxed like a partnership and thus avoids the corporate income tax.
The result of two firms forming one company.
A legal form of business with two or more owners.
A unique government creation that looks like a corporation but is taxed like sole proprietorships.
A business that is owned, and usually managed, by one person.
The responsibility of business owners for all of the debts of the business.
The joining of two companies involved in different stages of related businesses.