Business Structure Flashcards

Front

3 Basic Types of Businesses

Back

- Proprietorship - Partnership - Corporation

Front

Proprietorship

Back

A business owned by one person.

Front

Most common form of business in the US

Back

Proprietorship is the most common form of business to start and has the greatest number of business types in the US.

Front

Financial responsibility in a proprietorship

Back

The owner is responsible for all financial parts of the business.

Front

Partnership

Back

A business structure where two or more people are in business together.

Front

Number of partners in a partnership

Back

There is no limit to how many people can be in a partnership.

Front

Formation of a partnership

Back

Usually formed by a partnership agreement.

Front

Financial responsibility in a partnership

Back

All partners are responsible for the finances of the business unless agreed otherwise.

Front

Corporation formation

Back

Formed by articles of incorporation, which are legal documents filed with a state to form a corporation.

Front

Board of directors

Back

Corporations have a board of directors.