Entrepreneurship and Business Organizations

Flashcards covering key vocabulary related to entrepreneurship and business organizations, including sole proprietorships, partnerships, and civil society.

Entrepreneur

One who initiates and assumes the financial risks of a new enterprise and undertakes to provide or control its management.

Sole Proprietorship

The simplest form of business organization, in which the owner is the business.

Unlimited Liability

No separation between your assets and your business assets; Creditors can go after the owner’s personal assets to satisfy any business debts.

Partnership

An agreement between two or more persons to share a common interest in a commercial endeavor and to share its profits and losses.

At-will Partnership

Has no stated date and will continue until the partners dissolve the business.

Term Partnership

Partnership where partners designate a time period for the general partnership, after which the partnership dissolves.

Jointly Owned Company

A de facto situation in which a right belongs to two or more people, so that all of them are joint owners. It lacks legal personality different to its members and must have a private contract.

Civil Society

A business relationship formed by two or more people who contribute money, equipment and/or labor and divide the profits amongst themselves as they have agreed. Accordingly, any debts or financial obligations will also be divided among the parties; civil societies are not subject to registration in the Commercial Registry