| A | B |
|---|
| General Partner | A partner that has unlimited liability. |
| Shareholders | Also called stockholders or stock owners. |
| Sole Proprietorship | The easiest and least expensive business to establish. 76% of all businesses are established as this legal form. |
| Double Taxation | When company earnings are taxed and dividends (payouts from stock) are taxed as well. |
| Limited Partner | A partner whose liability is only limited to the amount in which she invests. |
| S-Corp | A form of ownership with no more than 100 stockholders who must be U.S. citizens. This form avoids double taxation. |
| Limited liability | A term to describe that you only lose the amount in which you invested. |
| Partnership | A business with more than 1 person, where responsibility, decision making, and capital can be shared amongst owners. |
| Corporation | Characteristics of this type of business include having stockholders, a pension plan, board of directors, perpetual existence, and tax advantages. |
| Unlimited liability | A term to describe that in the event of a business failure, losses (investment) can be unlimited. |
