Chapter 7 Terms Flashcards
A business firm that is owned by one person
sole proprietorship
A lender to whom a debt is owed
Creditor
A business firm that is owned by two or more people
Partnership
A business firm owned by two or more people
General partnership
A partner in a limited partnership who has no management responsibilities and no liabilities in the firm other than his total investment
Limited partner
a partnership in which there is at least one general partner who has unlimited personal financial liability and decision-making responsibility and at least one limited partner
limited partnership
one who obligates himself to pay the debts of another; a cosigner
Surety
agreeing to pay the debt of another person if he does not pay it
Cosigning
A business entity recognized by the government as separate from its owners or stock holders
Corporation
A corporation owned by private citizens
Private corporation
A corporation owned by the general public and managed by the government
Public corporation
shares or portions of ownership in a corporation
Stock
A corporate status for small businesses that allows them to continue being taxed at the lower personal income tax rates
subchapter S corporation
A form of business organization that combines the benefits of a corporation with those of a partnership
Limited liability company (LLC)
