Ch. 3 Test Review

A company with one owner who is responsible for all of the liability and takes all the risk.

• Partnership
• Limited Partnership
• General Partnership
• Sole Proprietorship 

A company with one or more partners only responsible up to the amount of the investment in the company

• Partnership
• Limited Partnership
• General Partnership
• Sole Proprietorship 

A company with all partners equally responsible for management and financial risks and obligations  of the company

• Corporation
• Limited Partnership
• General Partnership
• Sole Proprietorship 

The company itself has all liability. Partners buy shares of stock and can sell them if they no longer want to be a part of the company.

• Corporation
• Limited Partnership
• General Partnership
• Sole Proprietorship 

One vote for each share owned. Elects board of directors who run the company. 

• Common Stock
• Preferred Stock
• Startup
• Proprieortiship 

Government document that gives permission to create a corporation.

• Charter
• Shareholder
• Conglomerate
• Multinational

The most common form of business organization in the United States. 

• Partnership
• Limited Partnership
• General Partnership
• Sole Proprietorship 

Business that is jointly owned by two or more persons

• Sole Proprietorship
• Partnership
• Corporation

Recognized by law as a separate legal entity having all the rights of an individual

• Sole Proprietorship
• Partnership
• Corporation

A government document granting permission to create a corporation is called a

• Dividend
• Charter
• Articles of Corporation
• Proxy