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Articles of Incorporation

A set of formal documents filed with a government body to legally document the creation of a coporation

Articles of partnership

A written document that states explicitly the rights and duties of partners in a partnership

Board of Directors

The governing body that is elected by stockholders to act on behalf of the corporation and carry out board policies

Business

An organization that combines inputs of raw materials, capital, labor and management skills to produce useful outputs of goods and services to earn a profit

C Corporation

An ordinary corporation taxed by the federal government as a sperate legal entity

Capital

Financial resources available to a business; an owner’s financial interest in a business

Entrepreneur

One who organizes, manages, and assumes the risk of a business firm or venture

General partner

An owner in a partnership who has unlimited liability; a partner that is actually and openly engaged in the day-to-day operations of the business

General partnership (GP)

An arrangement by which partners conducting a business have unlimited liability; their personal assets are liable to the partnerships obligations

Limited Liability Company (LLC)

Form of business ownership that combines aspects of partnerships with the limited liability of a corporation; owners known as members and cannot be held personally liable for the company’s debts or liabilities

Limited Partner

Partner in a partnership who is generally not active in the business and whose liability is limited to the extent of the partners share of ownership.

Limited Partnership (LP)

A form of partnership in which 2 or more partners unite to jointly conduct a business in which 1 or more of the partners is liable only to the extent of the amount of money that partner has invested.

Manufacturing Buiness

A business that makes finished goods and services from raw material by hand or machinery

Merchandising Buiness

A business that purchases finished goods for resale

Partnership

The voluntary association of 2 or more people who have combined their resources to carry on as co-owners of a lawful enterprise for their joint profit

S Corporation

A type of corporation that offers limited liability to its owners but is taxed by the federal government as a partnership

Service Business

A business that provides a service as oppossed to a product

Small Business

A business that is independently owned and operated and is not dominant in its field of operations

Small Business Administation

The principal government agency concerned with the financing, operation, and management of small businesses

Sole proprietorship

A business owned by one person who bears unlimited responsibility for the enterprise

Personal commitment to business, strength of relationships, preservation of humanity in workplace, EMPHASIS PLACED ON QUALITY

What are some advantages of a family FH over other business structures?

Actively managed by owner, highly personalized, local in area of operations, largely dependent on internal sources of capital, not a major force in the industry

Describe the qualities of small business

tax on business AND shareholder earnings

Describe the concept of double taxation