Chapter 8: Types of Business Organizations
partnership
a business co-owned by two or more partners who agree on how responsibilities, profits, and losses of that business are divided
conglomerate
a business composed of several companies, each one producing unrelated goods or servieces
cooperative
a business operated for the shared benefit of the owners, who also are its customers
sole proprietorship
a business organization owned and controlled by one person
corporation
a business owned by stockholders, who own the rights to the company's profits but face limited liability for the company's debts and losses
unlimited liability
a business owner is responsible for all the business's losses and debts
limited liability
a business owner's liability for debts and losses of the business is limited
nonprofit organization
a business that aims to benefit society, not to make a profit
franchise
a business that licenses the rights to sell its products in a particular area
bond
a contract issued by a corporation that promises to repay borrowed money, plus interest, on a fixed schedule
unlimited life
a corporation continues to exist even after an owner dies, leaves the business, or transfers his or her ownership
multinational corporation
a large corporation with branches in several countries
franchisee
a semi-independent business that buys the rights to run a franchise
stock
a share of ownership in a corporation
limited life
a situation where a business closes in the owner dies, retires, or leaves for some other reason
limited liability partnership (LLP)
all partners are limited partners and not responsible for the debts and other liabilities of other partners
business organization
an enterprise that produces goods or provides services, usually in order to make a profit
limited partnership
at least one partner is not involved in the day-to-day running of business and is liable only for the funds he or she has invested
private company
controls who can buy or sell its stock
dividend
part of a corporation's profit that is paid out to stockholders
general partnership
partners share management of the business and each one is liable for all business debts and losses
public company
stock that can be publicly traded
vertical merger
the combining of companies involved in different steps of producing or marketing a product
horizontal merger
the combining of two or more companies that produce the same product or similar products
