Business Organizations Flashcards

Flashcards to help understand the main features of different forms of business organization.

businesses do not have a separate legal identity from its owner(s).

Unincorporated

businesses have a separate legal identity from its owner(s).

Incorporated

With __ Liability, if a business fails, the owners only lose what they invested.

Limited

With __ Liability, owners are held liable for the business's debts and may need to pay back with their own money.

Unlimited

A __ is an unincorporated business owned and operated by one person.

Sole Trader

A __ is an unincorporated business similar to a sole trader but with 2 or more owners.

Partnership

A __ (LTD) is an incorporated business owned by shareholders.

Private Limited Company

A __ (PLC) is an incorporated business similar to a private limited company but shares can be sold to the public.

Public Limited Company

In a __, 2 or more businesses start a new project together.

Joint Venture

A __ is a company that owns the original business and sells the franchise to a franchisee.

Franchisor

A __ is someone who buys a franchise from the franchisor to use the brand name.

Franchisee