Organizations in capitalist Economic Systems

What is a sole proprietorship?

A business run and owned by one individual with no legal distinction between the owner and the business.

What liabilities does a sole proprietor have?

A sole proprietor is liable for all debts and losses of the business.

What is the difference between a general partnership and a limited partnership?

In a general partnership, partners share liabilities and profits equally, while in a limited partnership, at least one partner has unlimited liability and others have limited liability.

Who is a silent partner in a partnership?

A silent partner is someone who invests in the business but is not involved in everyday operations.

What defines a corporation?

A corporation is a company or group of people authorized as a single entity, legally recognized as a person in law.

What are the two main types of corporations?

Privately owned corporations and publicly-traded corporations.

What is a primary advantage of a publicly-traded corporation?

It can raise capital on the stock market.

What is a key disadvantage of being a publicly-traded corporation?

Must answer to shareholders and is subject to more regulations.

What is the main purpose of a non-profit organization?

To use its revenues back into its purpose rather than distributing profit.

What are cooperatives?

Businesses owned and operated by a group of individuals, where members are stakeholders and use the services or products offered.