business ch.5
limited liability company
A company similar to an S corporation but without the special eligibility requirements
merger
Combination of two or more companies into a single firm
sole proprietorship
a business that is owned and usually managed by one person
franchisor
a company that develops a product concept and sells others the rights to make and sell the products
cooperative
a jointly owned commercial enterprise (usually organized by farmers or consumers) that produces and distributes goods and services and is run for the benefit of its owners
partnership
a legal business with two or more owners
corporation
a legal entity with authority to act and have liability apart from its owners
general partnership
a partership in which all owners share in operating the business and in assuming liability for the business's debts
limited liability partnership
a partnership that limits partner's risk of losing their personal assests to only their own acts and omissions and the the acts and omissions of people under their supervision
acquisition
one company's purchase of the property and obligations of another company
limited partnership
one or more general partners and one or more limited partners
limited liability
responsibility of a business's owners for losses only up to the amount they invest, limited partners and shareholders have limited liability
franchise agreement
someone with a good idea for a business sells the rights to use the business name and sell a product or servers to others
conglomerate merger
the joining of firms in completely unrelated industries
horizontal merger
the joining of two firms in the same industry
unlimited liability
the responsibility of business owners for all of the debts of the business
franchise
the right to use a specific business's name and sell its products or services in a given territory
vertical merger
The joining of two companies involved in different stages of related businesses
master limited partnership
a partnership that looks much like a corporation but is taxed like a pertnership and thus avoids the corporate income tax.
franchisee
a person who buys a franchise
Conventional 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
leveraged buyout
an attempt by employees, management, or a group of investors to purchase an organizational primarily through borrowing.
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 does not have any management responsibility or liability for losses beyond the investment
