Business Ownership

A business that is owned by one person.

• sole proprietorship

• partnership

• corporation

• franchise

Advantages of a sole proprietorship include all except:

• easiest to start up

• pride of ownership

• keep all the profits

• limited liability

A voluntary association of two or more people as co-owners of a business.

• sole proprietorship

• partnership

• corporation

• franchise

a person who invests money in a business who has no managment responsibilities or liability for loss

• general partner

• limited partner

• sole proprietor

• franchisee

A disadvantage of a partnership includes

• difficulty of start up

• limited liability

• combined resources

• frozen investment

An artificial person or legal entity form of business ownership

• sole propreitorship

• partnership

• corporation

• franchise

What is the first step to incorprating?

• create a corporate charter

• issue stock

• elect board of directors

• determine the corporate structure

Owners of a corporation

• stockholders

• board of directors

• CEO

• sole proprietor

Type of stock that allows voting rights

• common

• preferred

Distribution of profits to stockholders

• stock

• bond

• dividend

• proxy