Chapter 6 Forms Of Busniess Ownership Flashcards Preview

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Flashcards in Chapter 6 Forms Of Busniess Ownership Deck (22):
1

Partnership

Legal form of business with 2 or more people

2

Corporation

Legal entity with authority to act and have liability separate from its owners

3

Liability

Includes the responsibility to pay all normal debts and to pay cause of a court order or law

4

Unlimited liability

Responsibility of business owners for all debts of the business

5

General partnership

All owners share in the operating the business and in assuming liability for all business debts

6

Limited partnership

Partnership with one or more general partners and one or more limited partners

7

General partner

Owner who has unlimited liability and is active in managing firm

8

Limited partner

Owner who invests money in the business but does not have management responsibility

9

Limited liability

Business owners who are only responsible for kissing the amount the have invested

10

Partnership agreement

Legal do cumene that specifies the rights and responsibilities of each partner

11

Public corporation

Has the right to issue shares to the public so it shares may be listed on stock exchange

12

Private corporation

Is not allowed to issue stock to the public m, so it's shares are not listed in stock exchange

13

Corporate governance

Process and policies that determine how an organization interacts with stakeholders both internal and external

14

Merger

Results of 2 firms forming one company

15

Acquisition

One companies purchase of the property's and obligations of another company

16

Vertical mergers

Joining 2 companies involved in different stages of related businesses

17

Horizontal merger

Joining of firms in the same industry

18

Conglomerate merger

Joking of 2 firms in completely unrelated industries

19

Leveraged buyout

Attempt by employees, management or a group of investors to purchase on organization primarily through borrowing

20

Franchise

Right to use a specific business's name and sell its goods or services to a given territory

21

Co-operative

Owned by members and customers who pay an annual membership and fee

22

Sole proprietorship

Business that is owned and usually managed by one person