chapter 2 definitions Flashcards
(20 cards)
A business directly owned by one person who receives all profits and is responsible for all liabilities.
sole proprietorshsip
resppnsbilitty for claims against the business that goes beyond the amount invested in the business and extends to ones personal assets
unlimited liability
A business with two or more owners who share responsibilities and profits/ losses
partnership
The legal document that establishes a partnership and each partners responsibilities
partnership agreement
The most common form of partnership, in which the partners share in responsibility, decision-making, and profits. However, the partners have unlimited liability for the debts of the business
general partnership
a partnership in which the liability of each partner is limited to the amount of his or her investment
limited partnership
A restriction on the extent to which the shareholders( owners) of a corporation are personally responsible for its debts, limiting their liability to the amount they originally invested.
limited liability
a business owned by, but existing seperately from its shareholders
cooperation
a business operating in or involving several nations. Also known as a transnational
multinational
a unit of ownership in a cooperation
share/ stocks
a person who owns shares in a cooperation; also called a stockholder
shareholder
a group of individuals who run a cooperation or cooperative and make decisisons on behalf of shareholders
board of directors
The part of a cooperations profit after taxes that each shareholder recieves
dividend
a cooperation owned by a small number of shareholders.
private cooperation
a cooperation with many shareholders, whose shares can be bought and sold on a stock exchange.
public cooperation
a business owned and operated by the provincial or federal government
crown cooperation
the formal name for a city or town
municipal cooperation
a business owned by members who utilize the goods and services offered
cooperative
The parent company who grants the franchise and provides goods and services to the franchisees
franchiser
a person who runs a franchise operation and is under contract, or licensing agreement with the franchiser.
franchisee
