Types of Business Ownership

These flashcards cover key concepts related to different types of business ownership, partnerships, and corporate structures.

What is a small business defined as?

A small business is defined as one that has fewer than 500 employees.

What is a solopreneur?

A solopreneur is a small business owner who runs their business as a single individual, often with no employees.

What is a Sole Proprietor?

A Sole Proprietor is a business owned by one person, where the owner has unlimited liability.

What is a Partnership?

A Partnership is a business owned by two or more people.

What are the types of Partnerships?

The main types of Partnerships are General Partnership, Limited Partnership, and Limited Liability Partnership.

What is a Limited Liability Company (LLC)?

An LLC is a hybrid business structure combining the operational characteristics of a sole proprietorship or partnership while limiting the liability of the investors.

What is the difference between Unlimited Liability and Limited Liability?

Unlimited Liability means the owner can lose more than they invested, while Limited Liability protects the owners from losing more than their investment in the business.

What is a 'C' Corporation?

A 'C' Corporation is a business that can sell shares of stock to the general public and faces double taxation.

What is a 'B' Corporation (B Corp)?

A B Corporation is a C or S Corp that also includes public benefit in its business purpose.

What is a franchise?

A franchise is a business relationship giving the franchisee access to the franchisor's knowledge, systems, and brand for a fee.

What is a Joint Venture?

A Joint Venture is when two or more companies pool resources for a specific task or project.

What is a Non-Profit Corporation?

A Non-Profit Corporation serves a public service and may get special tax treatment.

What is the definition of a Merger?

A Merger occurs when two companies join to form one company, often one company gives up its brand identity.

What is an 'S' Corporation?

An 'S' Corporation has limited owners to avoid double taxation while passing tax liability directly through to each owner.

What are the characteristics of Limited Liability?

Limited Liability means investors can only lose the amount they invested in the business.