| A | B |
|---|
| sole proprietorship | form of business where the owner is the only one responsible for the business activities |
| liability | money owed to others |
| unlimited liability | the debts incurred by a firm may have to be paid from the owner's personal assets |
| partnership | form of business where more than one person shares the business's decisions and outcomes |
| general partners | partners who share unlimited personal liability and take full responsibility for the management of the business |
| limited partners | partners whose liability is limited to their investment |
| corporation | a business that is chartered, or registered, by a state, and legally operates apart from its owner or owners |
| C-corporation | a form of corporation which protects the entrepreneur from being used personally for actions and debts of the corporation |
| limited liability | a form of business ownership in which the owners are liable only up to the amount of their individual investments |
| Subchapter S corporation | form of corpration which is taxed like a sole proprietorship or partnership |
| nonprofit corporation | legal entities that make money for reasons other than the owners' profit |
| Limited Liability Company (LLC) | form of business organization with limited liability and has pass-through tax advantages |
