Chapter 2: Understanding Characteristics of Business

A business owned and operated by a single individual

• sole proprietorship

• partnership

• corporation

• limited liability company

• general partnership

A form of business owned by two or more individuals who share management and profits

• limited liability company

• corporation

• partnership

• sole proprietorship

• s-corporation

A business owned by stockholders who share in profits and losses

• partnership

• corporation

• sole proprietorship

• general partnership

• franchise

Type of ownership that joins elements of a corporation and a partnership

• partnership

• corporation

• limited liability company

• franchise

• sole proprietorship

An organization that generates income for its owners

• Non-profit

• manufacturer

• board of directors

• perfect competition

• profit business

A company that is created to benefit a public interest; does not earn profits for its owners

• Non-profit

• marketer

• perfect competition

• oligopoly

• franchise

A business model where the owner of a company grants another business owner the right to use the owner company's name

• corporation

• partnership

• franchise

• limited liability company

• s-corporation

Businesses that extract natural resources from the earth for use in the creation of goods.

• Manufacturer

• Wholesaler

• Non-profit

• Extractor

• Service business

Businesses that use raw materials to create goods.

• Extractor

• Manufacturer

• Service Business

• Wholesaler

• Marketer

Businesses that provide services to the economy, rather than goods.

• Extractor

• Manufacturer

• Service business

• Wholesaler

• Marketer