Business Organization

Front

_______________ are firms legally owned by only one person.

Back

sole proprietorships

Front

___________ are businesses owned by two or more people.

Back

partnership

Front

____________ are firms legally owned by stockholders who have purchased “shares” of the company in the hope that the value of their shares will increase over time and pay dividends.

Back

Corporations

Front

_____________ are money payments distributing some of a firm’s profit to shareholders on a quarterly basis.

Back

dividends

Front

_______________ also have the ability to raise money by issuing bonds to raise money for ventures.

Back

Corporations

Front

____________________ means that if a business is unable to meet its financial obligations, the owner(s) of the business are personally responsible to pay those debts. This means the owner(s) could be required to liquidate personal assets such as their home to pay the debts of the company.

Back

Unlimited liability

Front

_______________ is when responsibility for the debts of the business are restricted to the ownership stake (shares of stock) the business owner owns. The personal assets of the shareholder are not in jeopardy.

Back

Limited liability

Front

_____________ means the business closing or reorganizing a business under the new owner(s) when the previous owner(s) leaves the business.

Back

limited life

Front

_______________ means the business passes to new owners through the sale of shares without ending the business.

Back

Unlimited life

Front

Which of the following business organizations is taxed twice? sole proprietorship, partnership, corporation

Back

corporation