Econ: Chp 8 lessons 1-3 Types of Businesses

An enterprise that produces goods or provides services is known as:

• commodity

• business organization

• entity

• collaboration

A business owned and managed by a single person is:

• LLC

• partnership

• corporation

• sole proprietorship

A situation in which a business ceases to exist if the owner dies, retires, or leaves the business for some other reason describes:

• leverage

• hostile takeover

• limited life

• unlimited liability

A situation in which a business owner is responsible for all the losses, debts, and other claims against the business describes:

• leverage

• hostile takeover

• limited life

• unlimited liability

A business that is co-owned by two or more people.

• partnership

• corporation

• conglomerate

• LLC

Most common type of partnership – usually a 50/50 split. Partners share responsibility for profits and losses.

• natural

• general

• common

• contemporary

A partnership in which at least one partner is not involved in the day-to-day running of business and is liable only for the funds he/she has invested.

• limited

• reserved

• general

• contemporary

A partnership, relatively new, in which the partners are not responsible for the debts and liabilities of the other partners.

• limited

• reserved

• general

• limited liability

A business owned by shareholders, who own the rights to the company’s profits but face limited liability for the company’s losses.

• partnership

• collaboration

• corporation

• DBA

Shares of ownership in a corporation are commonly called:

• DBA's

• refunds

• stock

• dividends