1-10 Types of Business Ownership Flashcard

Front

A legal entity that is separate from its owners and controlled by a board of directors; the entity has most of the same rights and responsibilities that individuals possess but offers limited liability.

Back

Corporation

Front

A business owned by two or more people.

Back

Partnership

Front

The legal responsibility of an individual (or entity) for actions, debts, and obligations.

Back

Liability

Front

A business owned by one person, and where the owner has unlimited liability.

Back

Sole Proprietorship

Front

A legal document that outlines the rights, responsibilities, and obligations of the individuals involved in a partnership.

Back

Partnership Agreement

Front

The liability restricts an individual’s potential loss to the total amount of their investment in a company.

Back

Limited Liability

Front

A business structure where one or more of the partners are not active, have no decision-making power, and are limited in their liability to the amount they invested.

Back

Limited Partnership

Front

The liability that extends beyond an individual’s financial investment in a company.

Back

Unlimited Liability

Front

A type of business structure where the owners are not personally liable for the company's debts or liabilities.

Back

Limited Liability Company

Front

A partnership where all partners share equal responsibility and liability for the management and debts of the business.

Back

General Partnership