Chapter 7 - Types of Business Ownership

sole proprietorship

Form of business where the owner is the only one responsible for the business

liability

Money owed to others

unlimited liability

The debts incurred by a firm may have to be paid from the owner's personal assets

partnershp

Form of business where more than one person shares the business's decisions and outcomes

general partners

Partners who share unlimited personal liability and take full responsibility for the management of the business

limited partners

Partners whose liability is limited to their investment

corporation

A business that is chartered, or registered, by a state, and legally operates apart from its owner or owners

C-corporation

A form of corporation which protects the entrepreneur from being sued personaly for actions and debts of the corporation

Subchapter S corporation

Form of corporation which is taxed like a sole proprietorship or partnership

limited liability

A form of business ownership in which hte owners are liable only up to the amount of their individual investments

nonprofit corporation

Legal entities that make money for reasons other than the owners' profit

Limited Liability Company

Form of business organization with limited liability and pass-through tax advantages