Chapter 5

Franchise

A ________ is the right to use a business name and to sell a product or service in a given territory.

sole proprietorship

A business that is owned, and usually managed, by one person is a__________.

Limited Liability Corporation

A company that is similar to an S corporation, but without the special eligibility requirement is called a (n)_____________

corporation

A legal entity with authority to act, a(n) _________ has liability separate from its owners.

partnership

A legal form of business with two or more owners is a ________

Acquisition

In a(n) ________one company purchases the property and obligations of another company.

vertical merger

In the business venture known as a(n) _______ , two companies which are involved in different stages of related businesses join together.

cooperative

A __________ is a business that is owned and controlled by the people who use it —producers, consumers or workers with similar needs who pool their resources for mutual gain.

Franchisor

A __________ is a company that develops a product concept and sells others the rights to make and sell the products.

horizontal merger

A __________ joins two firms in the same industry

Limited Liability partnership

A ____________ is one 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.

franchise agreement

A ___________is an arrangement whereby someone with a good idea for a business sells the rights to use the business name and to sell a product or service to others in a given territory.

Conglomerate Merger

A business proposition that joins firms in completely unrelated industries is called a(n) _________.

Franchisee

A ______ is a person who buys a franchise.

Limited Partner

A partner is called a ________ when she has invested money in a business but does not have any management responsibility or liability for losses beyond the investment.

general partner

A partner who has unlimited liability is called a _________ and is active in managing the firm.

general partnership

A partnership is called a(n) _________when all owners share in operating the business and in assuming liability for the business's debts.

Conventional Corporation

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

mastered limited partnership

A(n) ___________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 corporate income tax.

limited partnership

An agreement such as a(n) __________ is a partnership with one or more general partners and one or more limited partners.

Leveraged Buyout

An attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing is called a(n)_________

limited liability

Limited partners and shareholders have _________ because they are only responsible for the losses of a business up to the amount they invest.

unlimited liability

The concept of ________ means that business owners are responsible for all of the debts of a business.

Merger

The result of two firms forming one company is a __________

S Corporation

This unique government creation called a(n) __________ looks like a corporation but is taxed like sole proprietorships and partnerships.