Business Organization Vocab

a business owned and run by a single person that has all of the rights to the profits as well as unlimited liability for all debts is known as a

• corporation

• partnership

• sole proprietorship

• franchise

When an owner is personally and fully responsible for all losses and debts of a business they have

• unlimited liability

• limited liability

• common stock

• limited life

When a firm ceases to exist when the owner dies or quits, the firm has

• unlimited liability

• limited liability

• limited life

• common stock

unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm

• sole proprietorship

• partnership

• corporation

• franchise

most common, all partners are responsible for the management and financial obligations of the business

• limited partnership

• general partnership

• sole proprietorship

• common stock

at least one partner is not active in the daily running of the business and has limited responsibility for debts/obligations

• limited partnership

• general partnership

• common stock

• unlimited liability

form of business organization recognized by law as a separate legal entity with all the rights of an individual

• sole proprietorship

• partnership

• corporation

• franchise

government document that gives permission to create a corporation

• common stock

• preferred stock

• bond

• charter

certificate of ownership in a corporation

• charter

• stock

• bond

• limited liability

people who own a share of stock in a corporation

• stockholders

• partners

• franchisee

• franchisor