Ch.6 Flashcards
co-operative(co-op)
An incorporated business that is owned by an association of persons seeking to satisfy common needs.
Coporate governance
The process and policies that determine how an organization interacts with its stakeholders, both internal and external.
Corporation
A legal entity with authority to act and have liability separate from its owners
franchise
the right to use a specific business’s name and sell its goods or services in a given territory.
Franchisor
A company that develops a product concept and sells others the rights to make and sell the products.
general partner
An owner (partner) who has unlimited liability and is active in managing the firm.
General partnership
A partnership in which all owners share in operating the business and in assuming liability for the business’ debts.
Limited liability partnership
A partnership that limits partners’ risk of losing their personal assets to only their own acts and omissions and to the acts and omissions of people under their supervision.
Limited partner
An owner (partner) who invests money in the business but does not have any management responsibility or liability for losses beyond the investment.
Limited partnership
A partnership with one or more general partners and one or more limited partners.
Private corporation
Corporation that is usually controlled by a small number of shareholders and its shares are not listed on a stock exchange.
Public corporation
Corporation that has the right to issue shares to the public, so its shares may be listed on a stock exchange.
Sole proprietorship
A business that is owned, and usually managed, by one person.
Unlimited liability
The responsibility of business owners for all of the debts of the business.
