Understanding Business Structures Flashcard

Front

What is the simplest form of business ownership, typically owned and operated by one individual?

Back

Sole Proprietorship

Front

Who are the actual owners of a corporation?

Back

Stockholders

Front

Which business structure involves two or more people sharing ownership and responsibilities?

Back

Partnership

Front

What is the term for a business that grants the right to use its name and sell its products to others?

Back

Franchisor

Front

Which type of partnership limits the liability of some partners to only their investment? Options: Sole Proprietorship, Limited Partnership, Corporation, Franchise

Back

Limited Partnership

Front

What do you call a person or company that buys the right to use a business’s name and sell its products?

Back

Franchisee

Front

Which business form is recognized as a separate legal entity from its owners?

Back

Corporation

Front

Who is responsible for the debts in a sole proprietorship?

Back

The sole owner

Front

Which term refers to individuals who own shares in a corporation?

Back

Stockholders

Front

What is the main advantage of a limited partnership over a general partnership?

Back

Limited liability for some partners