2nd Exam

Sole proprietorship

A business owned, and usually managed, by one person.

Unlimited liability

The responsibility of business owners for all debts of the business.

General partnership

A partnership in which all owners share in operating the business and in assuming liability for the business’s debts.

Limited liability

The responsibility of a business’s owners for losses only up to the amount they invest.

Master limited partnership (MLP)

A partnership that acts like a corporation but is taxed like a partnership to avoid corporate income tax.

Franchise agreement

An arrangement whereby a franchisor sells the rights to use a business name and sell a product or service to franchisees.

Management

The process used to accomplish organizational goals through planning, organizing, leading, and controlling.

SWOT analysis

A planning tool used to analyze an organization’s strengths, weaknesses, opportunities, and threats.

Maslow’s Hierarchy of Needs

Theory of motivation based on unmet human needs from physiological to self-actualization.

Expectancy Theory

The idea that the effort employees exert on a task depends on their expectations of the outcome.