Business Ownership

These flashcards cover essential vocabulary and key concepts related to different forms of business ownership as discussed in Chapter 2.

Sole Proprietorship

The simplest form of business ownership, where one individual owns and operates the business.

General Partnership

An unincorporated association of two or more persons who conduct a business for mutual profit.

Limited Partnership

A partnership where at least one partner has unlimited liability, while limited partners' liabilities are capped at their investment.

Corporation

A legal entity created by law, composed of one or more individuals, that provides limited liability to its owners.

S Corporation

A corporation that meets specific criteria to be taxed as a partnership, allowing profits to be passed directly to shareholders.

Joint Venture

A temporary business arrangement where two or more contractors combine resources for a specific project.

Employee Stock Ownership Plan (ESOP)

A program that provides a company's workforce with an ownership interest in the company through stock ownership.

Limited Liability Company (LLC)

A business structure that offers limited liability to its owners and is taxed like a partnership.

Unlimited Liability

The personal liability of a sole proprietor or general partner for all business debts and obligations.

Foreign Corporation

A corporation that operates in a state other than the one in which it was incorporated.