Understanding Canadian Business: Chapter 6 - Forms of Business Ownership

A set of vocabulary flashcards based on the key concepts related to forms of business ownership in Canada, suitable for exam preparation.

Sole Proprietorship

A business owned and operated by one person without forming a corporation.

Unlimited Liability

A situation where the owner of the business is personally responsible for all debts incurred by the business.

General Partnership

A partnership in which all partners share in operating the business and assume liability for the business's debts.

Limited Partnership

A partnership with at least one general partner and one or more limited partners.

General Partner

An owner in a partnership who has unlimited liability and is actively involved in managing the firm.

Limited Partner

An owner in a partnership who invests money but does not have management responsibilities or liability for losses beyond their investment.

Corporation

A legal entity that is separate from its owners, providing limited liability to its shareholders.

Private Corporation

A corporation that is not traded on any stock exchange and limited to 50 or fewer stockholders.

Public Corporation

A corporation whose shares are traded on one or more stock exchanges.

Non-Profit Corporation

A corporation that serves a public purpose and does not seek profit for its owners.

Franchise

An arrangement where a franchisor grants a franchisee the rights to operate a business using its brand and system.

Franchisor

The party that owns a trademark or trade name and licenses it to another party to operate a business.

Franchisee

The party that purchases the rights to operate a business using the franchisor's trademark and system.

Co-operative

A business entity owned and operated by a group of individuals for their mutual benefit.

Agricultural Co-operative

A co-operative owned by farmer members that combines resources to sell their products.

Consumer Co-operative

A co-operative that provides goods and services to its members for personal use.

Producer Co-operative

A co-operative where producers process and market their goods directly.

Mutual

An organization created by and for its members to offer mutual aid or protection.

Corporate Governance

The system of rules and practices that direct and control a company, balancing the interests of stakeholders.

Mergers and Acquisitions

Transactions in which the ownership of companies, other business organizations, or their operating units are transferred or consolidated.