Chapter 7 Terms Flashcards
Lender who decides wether to grant a loan
Creditor
business enterprise with two or more persons as the owners.
Partnership/ general partnership
one general partner, who has unlimited personal financial liability, and at least one limited partner. The limited partner invests money in the partnership and has the right to inspect the books and to share in the profits of the firm, but he has no management responsibilities and makes no business decisions for the partnership
Limited partnership
the act of becoming security for or pledging to undertake another’s debt.
Surety
When business owners legally declare that the business is its own organization, independent of and separate from the owners.
Corporation
corporate form of business ownership. Private citizens are the owners.
Private corporations
The general public owns and the government manages such businesses.
Public corporation
A person becomes an owner of part of a corporation by buying shares of its ____
Stock
To encourage incorporation, the U.S. government has created a corporate status for small businesses that allows them to continue being taxed at the lower personal income tax rates. These small businesses are called ____
Subchapter s corporations
the owners of an ____ are not liable for the acts and debts of the ____, and as in a partnership, the owners avoid the double taxation of company earnings. If the owners set it up properly, the ____ is not subject to corporate taxes. All company earnings become part of the income of the members who receive them, and they pay income taxes accordingly.
Limited liability company (LLC)
Occasionally a lender may promise to grant a loan to someone with inadequate credit if another more creditworthy person will also sign the note promising to pay if the original borrower cannot.
Consigning
business firm that has one owner
Sole proprietorship
