4 Flashcards
Is an aggregation of the different businesses engage in the same kind of undertaking
Industry
Is an undertaking by a person’s or a group of persons who are partners or obstack holders who own a judicial entity known as a corporation whose main objective is to earn profit or the owners
Business
Business is just a small portion of an
Industry
Four kinds of business organization
Sole proprietorship
Partnership
Corporation
Cooperative
Generally the simplest way to set up a business
By a single individual who is simply responsible for running the business and this accountable for all debts and obligation related to business
Sole proprietorship
An agreement in which two or more persons combined their resources in a business with a view to making profit
Partnership
Two kinds of partnership
The general partnership
The limited partnership
All owner share the management of the business and each is personally responsible for and must assume the consequences of the actions of the other partners
General partnership
Contribute only capital take no part in control of management and are liable for depths to a specific extent only
The limited partnership
Kinds of partners according to liability
General partner and limited partner
One who if the partnership obligation his other properties not invested in the business are answerable
General partner
One whose liability for partnership obligation is only to the extent of his investment in the partnership
Limited partner
Kinds of partners according to nature of contribution to the partnership
Capitalist partner and industrial partner
One who contributes money or property to the partnership
Capitalist partner
One who contributes industry or personal services to the partnership
Industrial partner
Is a legal entity that is separate from its owners, the shareholders.
Corporation
Is an entity organized by people with similar needs to provide themselves with goods or services or to jointly use available resources to improve their income
Cooperatives
