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9 terms

Business Organizations Types

Types of business organizations defined
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Free Enterprise
Economic system in which individuals and businesses are allowed to compete for profit with a minimum of government interference
Entrepreneurship
The practice in which one actively participates in a free enterprise economy by starting any new organization or business which implements new innovative ideas through thoughtfully planned ventures
Entrepreneur
A person who organizes, operates, and assumes the risk for a
business venture
Sole Proprietors
Classification of type of business which dose not require any type of formal forms to fill out to start, but requires reporting income on an individuals 1040 Schedule C Income Tax Report.
Corporation
Considered a separate entity, and often provides a measure of legal and financial protection for its shareholders by sharing in its profits while not being personally responsible for its debts
Partnerships
Business organizations in which two or more persons share responsibilities, costs, profits, and losses.
S-Corporations
A type of corporation that combines the capital raising options and limited liability of a corporation but is taxed like sole proprietorships and partnerships
Trusts
These are generally formed upon the death of an individual and are designed to provide continuity of the investments and business activities of the deceased individual.
Nonprofits
type of organization which are formed for a charitable, civic, or artistic purpose are generally exempt from any federal and state taxation on their income an often called "exempt organizations"