Ch 8: Business Organization

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business organization

Back

an establishment formed to carry on commercial enterprise. It is profit motivated.

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sole proprietorship

Back

a business owned and managed by a single individual.

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business license

Back

authorization to start a business issued by the local government.

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zoning law

Back

law in a city or town that designates separate areas for residency and for business.

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liability

Back

a legal obligation to pay money to another party.

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partnership

Back

a business organization owned by two or more persons who agree on a specific division of responsibilities and profits.

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general partnership

Back

partnership in which partners share equally in both responsibility and liability.

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limited partnership

Back

partnership in which only one partner is required to be a general partner.

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limited liability partnership

Back

a type of partnership in which all partners are limited partners.

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articles of partnership

Back

a partnership agreement.