Entrepreneurship Lecture #7: Legal Aspects of a Business

A set of flashcards covering key legal concepts relevant to entrepreneurship.

Sole Proprietorship

A form of business with a single owner who has unlimited liability, controls all decisions, and receives all profits.

Unlimited Liability

A situation in which an owner is personally liable for all debts and obligations of the business, risking personal assets.

Partnership

A legal entity formed by two or more co-owners to carry on a business for profit, each sharing responsibility.

General Partner

A partner in a partnership who has unlimited personal liability and is involved in the management of the business.

Limited Partner

A partner in a limited partnership who contributes capital and has limited personal liability but is not involved in management.

Corporation

A business organization that exists as a legal entity, distinct from its owners, providing limited liability for shareholders.

Limited Liability

A legal structure where the owners' financial liability is limited to their investment in the company.

Share Certificate

A document that specifies the number of shares owned by a shareholder in a corporation.

Pre-emptive Right

The right of existing shareholders to buy new shares before they are offered to the public.

Intellectual Property (IP)

Creations of the mind including inventions, designs, brands, and artistic works that can be legally protected.

Patent

A government grant giving an inventor exclusive rights to their invention for a specified period.

Trademark

A recognizable sign, design, or expression that identifies products or services of a particular source.

Copyright

Legal protection for original works of authorship, preventing unauthorized reproduction or adaptation.

Trade Secret

Any confidential business information that provides an advantage over competitors who do not know or use it.

Licensing

An agreement where one party permits another to use their intellectual property in exchange for payment.

Contract

A legally enforceable agreement between two or more parties, outlining rights and obligations.

Product Safety and Liability

Legal responsibility of manufacturers and sellers to ensure that products are safe and do not harm consumers.

Business Registration

The process of officially registering a business entity to obtain legal recognition and operating rights.

Board of Directors

The governing body elected by shareholders to oversee the management of a corporation.

Partnership Agreement

A document that outlines the rights, responsibilities, and obligations of partners in a partnership.