Business Entrepreneurship and franchise CH 4-5

Define Sole Proprietorship

• A sole proprietorship is a business owned and usually operated by one Person, with personal liability for debts.

• A sole proprietorship is a corporation with limited liability.
• A sole proprietorship is a type of non-profit organization.
• A sole proprietorship is a business owned by multiple partners.

Define Unlimited Liability

• Unlimited liability is a legal concept that holds a business owner personally responsible for all the debts of the business.

• Unlimited liability is a type of insurance for business owners.
• Unlimited liability means the business can only incur limited debts.
• Unlimited liability protects the owner's personal assets from business debts.

Define Partnership

• A partnership is a legal agreement for personal loans.
• A partnership is a government program for small businesses.
• A partnership is a type of sole proprietorship.
• A partnership is a business structure where two or more individuals share ownership and management responsibilities.

Define General Partner

• A General Partner is a person who assumes full or shared responsibility for operating a business.

• A General Partner is a partner with limited liability and no management role.
• A General Partner is an investor who only provides capital without involvement in management.
• A General Partner is a type of employee in a corporation with fixed responsibilities.

Define Limited Partner

• A Limited Partner is a type of employee in a partnership.
• A Limited Partner is a person who invests money in a business but who has no management responsibility or liability for losses beyond their investment in the partnership. Just Money.

• A Limited Partner is an investor with unlimited liability.
• A Limited Partner is a partner with full management rights.

Define Corporation

• A corporation is a non-profit organization.
• A corporation is a type of small business.
• A corporation an artificial person, created by law, with most of the legal rights of a real person.

• A corporation is owned by a single individual.

Define Closed Corporation

• A closed corporation is a nonprofit organization with no shareholders.
• A closed corporation is a type of government-owned entity.
• A closed corporation is a publicly traded company with unlimited shareholders.
• A closed corporation also known as private is a corporation whose stock is owned by few people and is not sold to the general public.

Define an Open Corporation

• An Open Corporation also known as public is one whose stock can be bought and sold by any individual.

• A non-profit organization focused on community service.
• A private company that does not sell shares to the public.
• A corporation that only sells shares to a select group of investors.

Define Domestic Corporation

• A corporation that is only incorporated but does not operate in its home country.
• A corporation that is incorporated in a foreign country but operates domestically.
• A corporation that operates internationally without any local incorporation.
• A corporation that is incorporated and operates in the state in which it is incorporated.

Define Foreign Corporation

• A foreign corporation is a type of non-profit organization that serves local communities.
• A foreign corporation is a company incorporated outside the jurisdiction in which it operates. So In any state it does business except its home state.

• A foreign corporation is a business that has no legal status in any country.
• A foreign corporation is a company that only operates within its home country.