Chapter 2 (Types of business entities) Flashcards
Companies (corporations)
A limited liability business that is owned by shareholders
Cooperatives
For-profit social enterprises that are set up, owned and run by their members
Deed of partnership
The legal contract between the owners of a partnership
Incorporation
The legal difference between the owners and the business itself
Initial public offering (IPO)
The money a business receives when they sell themselves to shareholders on a public stock exchange for the first time (becoming a publicly held company)
Limited liability
A restriction on the amount of money that owners of a company can lose if the business goes bankrupt
Limited partnership
A partnership with at least one general partner (unlimited) and one limited partner
Non-governmental organizations (NGOs)
Private sector non-profit social enterprises
Partnerships
Private sector business owned by 2-20 people
Private sector
Part of the economy run by private individuals and businesses
Privately held company
A business whose shares cannot be bought by or sold to
Public sector
Part of the economy controlled by the government
Publicly held company
An business that allows shareholders to buy and sell shares
Sleeping partners
Partners who provide funds but don’t take an active part in managing the business
Social enterprises
An organization with social objectives (all surpluses must be reinvested into the business)
