bd ch 5

cooperative

a business owned and controlled by the people use use it - producers, consumers, or workers with similar needs who pool their resources for mutual gain

sole proprietorship

a business that is owned, and usually managed, by one person

limited liability company (LLC)

a company similar to an S corporation but without the special eligibility requirements

franchisor

a company that develops a product concept and sells others the rights to make and sell the products

corporation

a legal entity with authority to act and have liability separate from its owners

partnership

a legal form of business with two or more owners

general partnership

a partnership in which all owners share in operating the business and in assuming liability for the business's debts

limited liability partnership (LLP)

a partnership that limits partners' risk of losing their personal assets to only their own acts and omissions and to the acts and omissions of people under their supervision

master limited partnership (MLP)

a partnership that looks much like a corporation (in that it acts like a corporation and is traded on a stock exchange) but is taxed like a partnership and thus avoids the corporate income tax

limited partnership

a partnership with one or more general partners and one or more limited partners

conventional (C) corporation

a state-chartered legal entity with authority to act and have liability separate from its owners

S corporation

a unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships

franchise agreement

an 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

leveraged buyout (LBO)

an attempt to buy employees, managers, or a group of investors to purchase an organization primarily through borrowing

limited partner

an owner who invests money in the business but does not have any management responsibility or liability for losses beyond the investment

general partner

an owner(partner) who has unlimited liability and is active in managing the firm

acquisition

one company's purchase of the property and obligations of another company

conglomerate merger

the joining of firms in completely unrelated industries

vertical merger

the joining of two companies involved in different stages of related businesses

horizontal merger

the joining of two firms in the same industry

limited liability

the responsibility of a business's owners for losses only up to the amount they invest; limited partners and shareholders have limited liability

unlimited liability

the responsibility of business owners for all of the debts of the business

merger

the result of two firms forming one company

franchise

the right to use a specific business's name and sell its products or services in a given territory