| A | B |
|---|
| the ownership structure of a company or firm | business organization |
| In which business organization does the owner have all the responsibility? | Sole Proprietorship |
| This is someone who starts their own business. | Entrepreneur |
| These are laws in a city that designate certain areas to be for residential and others for business. | Zoning Laws |
| What happens to a sole proprietorship if the owner passes away and no one is left to take over? | It fails and goes under |
| What are business organizations owned by two or more people? | partnerships |
| This type of partnership is where all partners share financial responsibility equally. | General Partnership |
| This partnership is where only one person has full financial responsibility and the other partners only invest their money. | Limited Partnership |
| In a limited partnership how many people in the partnership have unlimited personal liability? | One-the general partner |
| What are the advantages of a partnership? | Easy start up, Financial Impact, Shared Decision Making |
| What must all partnerships have that spells out the guidelines and rules for the firm or company? | Articles of Partnership |
| What are the disadvantages of a partnership? | unlimited liability, personal conflict, lack of performance |
| This is a semi-independent company that pays royalties to a parent company | Franchise |
| : a legal entity, or being, owned by individual stockholders, each of whom has limited liability for the firm’s debts | corporation |
| This is a certificate of ownership in a corporation | Stock |
| Type of corporation that offers stock to only a few member, aka: family. | Closed corporation |
| Corporation that sells stock on the open market | Public Corporation |
| What are the advantages of stockholders? | Limited liability, Provide Flexibility |
| a formal contract issued by a corporation or other entity that includes a promise to repay borrowed money with interest at fixed intervals | bond |
| This is a license to form a corporation issued by the state government | certificate of incorporation |
| : the portion of corporate profits paid out to stockholders | dividend |
| a type of business with limited liability for the owners, with the advantage of not paying corporate | Limited liability corporation |
| This is the combination of two firms competing in the same market with the same good or service | horizontal merger |
| This is two or more firms involved in different stages of producing the same good or service. | Vertical Merger |
| a business combination merging more than three businesses that produce unrelated products or services | Conglomerate |
| a large corporation that produces and sells its goods and services in more than one country | Multinational corporation |
| A business organization owned and operated by a group of individuals for their shared benefit | cooperative organizations |
| What is a benefit of a cooperative organization? | They don't have to pay taxes |
| Retail outlet owned and operated by consumers that sells merchandise to members at reduced prices | consumer co-ops |
| What is an example of a service co-op? | Credit Unions |
| Agricultural marketing to help members sell their products | Producer Co-ops |
| What does a producer co-op allow farmers to do? | farm rather than sell |
| Operates like a business but does not work for the purpose of generating profit | Non-Profit Organization |
| What are non-profit organizations exempt from? | Income Tax |
| What are examples of non-profit organizations | Professional organizations, Business and trade associations, labor unions |
