Chapter 16 Flashcards Preview

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Flashcards in Chapter 16 Deck (13)
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0
Q

A number assigned by the Internal Revenue Service which is used for income tax purposes

A

Employer identification number (EIN)

1
Q

A business owned by one person

A

Sole proprietorship

2
Q

A situation in which the owner of a business is responsible to pay the business debts out of personal assets

A

Unlimited liability

3
Q

A situation in which a business’s life span or existence is determined by the owner’s life span or the owner’s decision to terminate the business

A

Limited life

4
Q

A business owned by two or more persons

A

Partnership

5
Q

A written document that states how the partnership will be organized

A

Partnership agreement

6
Q

A business partner who has decision making authority, takes an active role in the operation of the business, and has unlimited liability for all loses or debts of the partnership

A

General partner

7
Q

A business partner who does not take an active role in decision making or in running the business

A

Limited partner

8
Q

A business organization that operates as a legal entity that is separate from its owners and is treated by law as if it was an individual person

A

Corporation

9
Q

The application to operate as a corporation

A

Articles of incorporation

10
Q

The rules by which a corporation will operate

A

Corporate by laws

11
Q

A license to operate a corporation

A

Corporate charter

12
Q

A group of individuals who are responsible for overseeing the general affairs of the corporation

A

Board of directors