Business 103 Chapter 5

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  1. sole proprietorship
    • A business that is owned, and
    • usually managed, by one
    • person.
  2. partnership
    • A legal form of business with
    • two or more owners.
  3. corporation
    • A legal entity with authority to
    • act and have liability apart from
    • its owners.
  4. unlimited liability
    • The responsibility of business
    • owners for all of the debts of
    • the business.
  5. general partnership
    • A partnership in which all
    • owners share in operating the
    • business and in assuming
    • liability for the business's debts.
  6. general partner
    • An owner (partner) who has
    • unlimited liability and is active
    • in managing the firm.
  7. limited partnership
    • A partnership with one or more
    • general partners and one or
    • more limited partners.
  8. limited partner
    • An owner who invests money
    • in the business but does not
    • have any management
    • responsibility or liability for
    • losses beyond the investment.
  9. limited liability
    • The responsibility of a
    • business's owners for losses
    • only up to the amount they
    • invest; limited partners and
    • shareholders (stockholders)
    • have limited liability.
  10. master limited partnership
    (MLP)
    • 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.
  11. Uniform Partnership Act
    The UPA defines three key elements of any general partnership as (1) common ownership, (2) shared profits and losses, and (3) the right to participate in managing operations of the business
  12. conventional (C) corporation
    • A state-chartered legal entity
    • with authority to act and have
    • liability separate from its
    • owners.
  13. S corporation
    • A unique government creation
    • that looks like a corporation but
    • is taxed like sole proprietorships
    • and partnerships.
  14. limited liability company (LLC)
    • A company similar to an
    • S corporation but without the
    • special eligibility requirements.
  15. merger
    • The result of two firms forming
    • one company.
  16. acquisition
    • One company's purchase of
    • the property and obligations of
    • another company.
  17. vertical merger
    • The joining of two companies
    • involved in different stages of
    • related businesses.
  18. horizontal merger
    • The joining of two firms in the
    • same industry.
  19. conglomerate merger
    • The joining of firms in
    • completely unrelated
    • industries.
  20. leveraged buyout (LBO)
    • is an attempt by
    • employees, management, or a group of private investors to buy out the stockholders
    • in a company, primarily by borrowing the necessary funds.
  21. franchise agreement
    • 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.
  22. franchise agreement
    • 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.
  23. cooperative
    • 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.

Card Set Information

Author:
davecowman
ID:
334339
Filename:
Business 103 Chapter 5
Updated:
2017-09-17 18:38:18
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Description:
Chapter 5 Basic Forms of Business
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