ECON 3.1

• Owned and operated by a single individual.

• Simplest form of business organization.

• Owner has complete control and makes all decisions.

• Inventory

• Unlimited Liability

• Corporation

• Sole Proprietorship

 Unlimited Liability is best described by the following:

• Partnerships are the least common form of business structure

  
  

• Limited partners have limited liability and limited involvement in management

• If the business fails, the owner's personal assets can be used to repay creditors

• Charters grant corporations legal recognition and specific rights

Refers to the goods held by a business for sale

• It includes raw materials, work-in-progress, and finished goods

• Supply

• Inventory

• General partnership

• Demand

• The following characteristics are an example of:

• All partners have equal responsibility and liability

• Partners are jointly and individually liable for debts

• Profit sharing and decision-making is shared equally

The firms ceases to exist if the owner dies, quits or sells the business.

• Inventory

• End of Business

• Corporation

• Limited Life

• Consists of general partners and limited partners

• General partners have unlimited liability

• Limited partners have limited liability and limited involvement in management.

All are examples of what:

• Legal entities separate from their owners

• Owned by shareholders who hold shares of stock

• Managed by a board of directors

All are characteristics of a corporation.

• True

• False

Charters define the corporation's purpose and powers.

• True

• False

Stockholders are individuals or entities that do not own shares of stock in a company,

• True

• False

These payments made by a corporation to its shareholders

Use the plural