Chapter 7 Economics Vocabulary

sole proprietorship

A business firm that is owned by one person

creditor

a lender to whom a debt is owed

partnership

a business firm that is owned by two or more people

general partnership

a business firm owned by two or more people

limited partnership

a partnership in which there is at least one general partner who has unlimited personal financial liability and decision-making responsibility and at least one limited partner.

limited partner

a partner in a limited partnership who has no management responsibilities and no liabilities in the firm other than this total investment.

surety

one who obligates himself to pay the debts of another; a cosigner

cosigning

agreeing to pay the debt of another person if he does not pay

corporation

a business entity recognized by the government as separate from its owners or stock holders

private corporation

a corporation owned by private citizens

public corporation

a corporation owned by the general public and managed by the government

stock

shares or portions of ownership in a corporation

subchapter S corporation

a corporate status for small businesses that allows them to continue being taxed at the lower personal income tax rates

limited liability company (LLC)

a form of business organization that combines the benefits of a corporation with those of a partnership