general business Flashcards
what is a business?
a business is something that distributes/sells/produces goods or services to customers in exchange for money.
what is a company?
a company is a business that has gone through the business of incorporation.
company characteristics
Owners form when shares are bought, these shares determine the ownership portion.
Companies have separate legal entities to it’s owners.
Companies can take on debt, sue, be sued, and purchase assets.
What is Limited Liability?
the owners of a business are only financially responsible for the debts of the company up to the amount of their investment.
not responsible for any debts beyond the value of their shares.
What is Unlimited Liability?
where the business owner(s) are completely liable for the business’s debts.
