Business Structures and Laws

A set of vocabulary flashcards covering key concepts related to business structures, laws, and economic development.

Sole Proprietorship

A business owned by one individual who has full control and receives all profits, facing unlimited personal liability.

Partnership

A business operated by two or more individuals, where partners share profits and losses and may have unlimited liability.

General Partnership

A partnership where all partners are agents of each other and share unlimited liability for business debts.

Limited Partnership

A partnership with both general partners (who manage the business and have unlimited liability) and limited partners (who invest with limited liability).

Limited Liability Partnership (LLP)

A partnership structure in which each partner is only responsible for their own negligence, protecting them from their partners' mistakes.

Corporation

A separate legal entity that can own property, sue and be sued, with shareholders having limited liability.

Agency

A relationship where one person (Agent) acts on behalf of another (Principal), binding the Principal to contracts.

Joint Venture

A temporary business arrangement between two or more parties for a specific project.

Franchise

The right to operate a business using another business’s name and system, usually involving fees and adherence to brand rules.

Indigenous Law

Legal principles that recognize the rights of Indigenous peoples, particularly regarding land and resource usage.

Duty to Consult and Accommodate

The legal obligation of the Crown to consult with Indigenous communities when projects may affect their rights.

Impact Benefit Agreements (IBAs)

Contracts between businesses and Indigenous communities that outline economic benefits and respect for traditional lands.

Debt Financing

Borrowing money that must be repaid with interest; businesses retain full control despite having to repay during struggles.

Equity Financing

Investors purchase ownership in a business in exchange for capital, without requiring repayment.

Secured Creditors

Creditors with a security interest in specific collateral who are paid first if a business fails.

Unsecured Creditors

Creditors without collateral, whose only remedy is to sue the debtor.

Act of Bankruptcy

Circumstances indicating that a business cannot meet its debt obligations.

Workplace Law

The area of law that includes various aspects such as human rights, employment standards, and health and safety regulations.

Non-Union Employees

Employees governed by common law and employment contract, with termination rights based on reasonable notice.

Union Employees

Employees governed by collective agreements, with disputes handled through grievance procedures.

PIPEDA

The federal law governing how private sector organizations collect, use and disclose personal information.

Digitalization

The process of using digital technology to transform aspects of business operations and culture.