sole proprietorship
a business owned and usually managed by one person
partnership
two or more people legally agree to become co-owners of a business
corporation
a legal entity with authority to act and have liability apart from its owners
unlimited liability
any debts or damages incurred by businesses are your debts, even if its means selling your home, car, or anything else
general partner
an owner who has unlimited liability and is active in managing the firm
limited partner
an owner who invests money in the business but enjoys limited liability
limited liability
debts of business is limited to the amount the limited partner puts into the company; personal assets are not at risk
general partnership
all owners shared in operating the business and in assuming liability for the business's debts
limited partnership
partnership with one or more general partners and one or more limited partners
master limited partnership (MLP)
partnership that looks much like a corporation but is taxed like a partnership and thus avoids the corporate income tax
limited liability partnership (LLP)
limits partners' risk of losing their personal assets to the outcomes of only their own acts and omissions and those of people under their supervision
conventional (C) corporation
state-chartered legal entity with authority to act and have liability separate from its owners
domestic corporation
does business in the state it is incorporated
foreign corporation
does business in one state but is incorporated in another
alien corporation
does business in US but is incorporated in different county
S corporation
unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships
limited liability company (LLC)
similar to a S corporation but without the eligibility requirements
merger
result of two firms joining to form one company
acquisition
one company's purchase of the property and obligations of another company
vertical merger
joins two firms in different stages of related business
horizonal merger
joins two firms in the same industry and allows them to diversify or expand their products
conglomerate merger
unites firms in completely unrelated industries in order to diversify business operations and investments
leveraged buyout (LBO)
an attempt by employees, management or a group of investors to buy out the stockholders in a company
franchise agreement
arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell a product or service to others in a given territory
cooperative (co-op)
owned a controlled by its users (ex. rural areas and farming)