wk4: Business Associations

Question 1

Purpose for a business

Answer 1

-an organization or enterprizing entity engaged in comerical, industrial, or professional activities

-businesses can be for-profit entities or they can be non-profit organizations that operate to fulfil a charitable mission or further a social cause

Question 2

Individual

Answer 2

-any person or legal entity that can do the things that a human person cis usually able to do in law - such as enter into contracts, sue and be sued, and own property

-in keeping with the above definition, companies, corporations and many government agencies are deemed to be “individuals”.

Question 3

Creditor

Answer 3

a person or company to whom money is owed

Question 4

Liability

Answer 4

extent that assets are available to satisfy creditors

Question 5

Limited Liability

Answer 5

limited only to business assets

Question 6

Unlimited Liability

Answer 6

personal assets are also available to satisfy creditors

Question 7

Sole Proprietorship

Answer 7

-individual owner
-no separate legal entity
-unlimited personal liability
-one level of tax