Business Organization and Ethics

These flashcards cover key concepts related to business organizations, ethics, and structures to aid in exam preparation.

LLC

Limited Liability Company; an organization type that provides limited liability to its owners (members) and can elect to be taxed as a partnership.

Franchisor

The company that owns the brand and business model and grants the right to others to use its name, logo, and system.

Franchisee

The person or business that buys the rights to operate under the franchisor's brand and pays fees/royalties.

Monopoly

A company that is the only seller in the market, having no competition.

Business Ethics

The moral rules and principles that guide how a business behaves.

Bribery

The act of giving money, gifts, or favors to influence someone’s decision unfairly.

Whistleblower

An individual who reports illegal or unethical behavior in a business or organization.

Plagiarism

The act of copying someone else’s work or ideas and claiming them as your own.

Dominant Business

A large company that controls a significant market share but still faces competition.

S Corporation

A type of corporation that passes income directly to shareholders to avoid double taxation, requiring the filing of an Information Return.

K-1 Form

A tax document provided to shareholders of an S Corporation that reports their share of pass-through income.

Sole Proprietorship

A business owned and run by one individual, where the owner is personally liable for the business debts.