Understanding Business Chap 5
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Created by:
shiv321 on June 29, 2010
Classes:
Econ, Bus, Marketing Period 2 YSSH, Econ, Bus, Marketing Period 10 YSSH, Business Management Orientation
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25 terms
Terms | Definitions |
|---|---|
 Sole Proprietorship | A business that is owned, and usually managed, by one person. |
| Partnership | A legal form of business with two or more owners. |
| Corporation | A legal entity with authority to act and have liability separate from its owners. |
| Unlimited Liability | Responsibility of business owners for all of the debts of the business. |
| General Partnership | A partnership in which all owners share in operating the business and in assuming liability for the business's debts. |
| Limited Partnership | A partnership with on or more general partners and one or more limited partners. |
| General Partner | An owner/partner who has unlimited liability and is active in managing the firm. |
| Limited Partner | An owner who invests money in the business but doesn't have any management responsibility or liability for losses beyond investment. |
| Limited Liability | Responsibility of a business's owners for losses only up to the amount they invest; limited partners and shareholders have limited liability. |
| Master Limited Partnership (MLP) | Partnership that looks much like a corporation (in that it acts like a corporation and is traded on a stock exchange) but is taxed like a partnership and thus avoids the corporate income tax. |
| Limited Liability Partnership (LLP) | Partnership that limits partners' risk of losing their personal assets to only their own acts and omissions and to the acts and omissions of people under their supervision. |
| Convential (C) Corporation | State-chartered legal entity with authority to act and have liability separate from its owners. |
| S Corporation | Uniqure g'vt creation that looks like a creation but is taxed like sole proprietorships and partnerships. |
| Limited Liability Company (LLC) | Company similiar to an S corporation but without the special eligibility requirements. |
| Merger | Result of 2 firms forming 1 company. |
| Acquisition | 1 company's purchase of property and obligations of another company. |
| Vertical Merger | Joining of 2 companies involved in different stages of related businesses. |
| Horizontal Merger | Joining of 2 firms in same industry. |
| Conglomerate Merger | Joining of firms in completely unrelated industries. |
| Leveraged Buyout (LBO) | An attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing. |
| Franchise Agreement | Agreement whereby someone with a good idea for a business sells the rts to use the business name and sell a product or service to others in a given territory. |
| Franchisor | Company that develops a product concept and sells others the rts to make and sell the products. |
| Franchise | Rt to use a specific business's name and sell its products or services in a given territory. |
| Franchisee | Person who buys a franchise. |
| Cooperative | Business owned and controlled by the people who use it--producers, consumers, or workers with similiar needs who pool their resources for mutal gain. |
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