| A | B |
|---|
| helps entrepreneurs see the risks and responsibilities involved in starting a business | business plan |
| most common form of business ownership | sole proprietroship |
| A partnership could be owned by as many as | two or more partners |
| if fails, a partner can lose personal assets in addition to the amount of money invested in the business | is the disadvantage of a partnership |
| A partnership ends if | a partner dies |
| Each stockholder holds this number of votes | 1 vote |
| pays dividends to stockholders | corporation |
| Approximately how many new businesses fail within the first five to six years | 50 percent |
| The most common form of business organization | proprietorship |
| usually work hard and for long hours | Entrepreneurs |
| assets- liabilities = | capital equity |
| can be managed by the proprietor or by persons hired by the proprietor | proprietorship |
| more capital is usually available for this type of business | partnership |
| type of partnership is the liability of a partner limited to the amount of the partner’s investment | limited partnership |
| at least one partner must be a general partner with unlimited liability in this type of partnership | limited partnership |
| official document giving power to run a corporation | charter |
| Ownership of a corporation is measured in | shares |
| If the corporation fails, stockholders are responsible for | only the amount invested in the corporation |
| shareholders can transfer ownership easily | advantage of corporations in relation to partnerships |
| this form of business does not pay taxes and does not exist to make a profit | nonprofit corporation |
| Owners of a corporation | stockholders |
| Property owned by a business | assets |
| who have first claim against assets | creditors |
| A statement of financial position | balance sheet |
| Money owed by a business | liabilities |
| Difference between assets and liabilities | capital |
| An employee who is given funds and freedom to create a special unit or department within a company in order to develop a new product, process, or service | intrapreneur |
| Top executive who is hired to manage a business | officer |
| Corporation that does not offer its shares of stock for public sale | close corporation |
| A written document that describes how to achieve the goals of a business | business plan |
