| A | B |
|---|
| 50 | how many new businesses fail within the first four to five years |
| partnership agreement | written agreement between two or more people identifying how they will add capital, labor, or other assets and divide any profits or share any losses in their business |
| personal assets | A disadvantage of a partnership that fails is that a partner can lose THESE in addition to the amount of money invested |
| limited | type of partnership is the liability of a partner limited to the amount of the partner’s investment |
| cannot | partnership ______________ continues if one partner dies |
| partners | If one partner is unable to pay his or her portion of the business’s debts, the other _____________must pay it. |
| difficult | It is _______________ to withdraw from a partnership. |
| capital | Difference between assets and liabilities. |
| business plan | A written document that describes how to achieve the goals of a business |
| liabilities | Money owed by a business |
| officer | Top executive who is hired to manage a business |
| creditors | Parties who have first claim against assets |
| intrapreneur | 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. |
| assets | Property owned by a business |
| close corporation | Corporation that does not offer its shares of stock for public sale |
| stockholders | Owners of a corporation |
| balance sheet | A statement of financial position. |
| more capital | advantage of partnerships when compared to proprietorship |
| board of directors | make up the ruling body of a corporation |
| disadvantages | Corporations usually have tax ________________ over partnerships |
| does not | a stockholder _________ ______have the same financial responsibility as a partner |
| charter | form a corporation a ______________ is needed |
| sole proprietorship | most common form of business organization |
| charter | official document giving power to run a corporation |
| proxy | stockholder who cannot attend a shareholders’ meeting can submit votes by THIS |
| owner | Financing the business is one of the responsibilities of the business _______________ |
| ownership | n advantage of corporations in relation to partnerships is that shareholders can transfer ___________easily |
| skills | One of the main reasons many proprietorships fail within a short time is that the owner lacks THESE |
| $200,000 | If assets are valued at $300,000 and capital amounts to $100,000, the liabilities of the business are |
| risks | business plan helps entrepreneurs see the _________ and responsibilities involved in starting a business |
