| A | B |
|---|
| License to operate a corporation | corporate charter |
| ______________means that a business ceases to exist when the owner leaves or dies. | limited life |
| A number assigned by the Internal Revenue Service to a business and used by the government for income tax purposes | Employer Identification Number (EIN) |
| All businesses not funded by the government | private sector |
| A partner who does not take an active role in decision making or running a business and whose liability is limited to the amoutn of his or her investment | limited partner |
| Rules by which a corporation will operate | corporate bylaws |
| A business organization that operates as a legal entity separate from its owners and is treated by law as an individual | corporation |
| A business organization that operates as a legal entity separate from its owners and is treated by law as an individual | partnership agreement |
| Government-funded services | public sector |
| a contractual agreement to sell a company's products or services | franchise |
| A disadvantage of a sole proprietorship is unlimited liability for business debts | True |
| A general partner has no decision-making authority. | False |
| Price competition means buyers will choose the lowest pried products available. | True |
| A limited liability company is a business that operates and pays taxes as partnership. | True |
| A parent corporation is a company that sells francchises | True |
| A closely held corporation sells its shares openly in stock markets. | False |
| Agency power legally obligates a partnership to a contract signed by one of the parties. | True |
| Limited life is a disadvantage of a partnership | True |
| A board of trustees oversees the general affairs of a corporation. | True |
| A closely held corporation may decide to expand by going public and selling stock on the open market. | True |
