Econ: Business Organizations
Bond
a formal contract to repay borrowed money with interest at fixed intervals.
Corporations differ from sole proprietorships, which have no identity beyond that of the owners. A corporation is defined as an "entity" because it has a legal identity separate from those of its owners. Legally, it is regarded much like an individual. A corporation pays taxes, may engage in business, make contracts, sue other parties, and get sued by others.
...
In the United States, Partnerships Make Up About 7 Percent Of Businesses .
...
What Is The Difference between A Limited Liability Partnership and A Limited Partnership?
In An LLP, All partners are protected from liability in some situations.
General Partnership
Partners in a general partnership share equally in both responsibility and liability. Many of the same kinds of businesses that operate as sole proprietorships could operate as general partnerships.
Articles Of Partnership
Partnership Agreement/Spells Out Each Partners Rights And Responsibilities
...
The primary reason that entrepreneurs choose to incorporate, or form a corporation, is to gain the benefit of limited liability. Individual investors do not carry responsibility for the corporation's actions. They can lose only the amount of money they have invested in the business.
closely held corporation
corporation that issues stock to only a few people, often family members
publicly held corporation
corporation that sells stock on the open market/ a large number of stock holders can buy and sell stock .
Limited Liability Partnership
In this type of partnership, all partners are limited partners. An LLP functions like a general partnership, except that all partners are limited from personal liability in certain situations, such as another partner's mistakes
Advantages of Incorporation
Limited liability for owners Transferable ownership Ability to attract capital Long life
Uniform Partnership Act
Uniform Partnership Act is a uniform state law adopted by most states to establish rules for partnerships. The UPA requires common ownership interests, profit and loss sharing, and shared management responsibilities.
Disadvantages of Partnerships
Unlimited Liability.
Taxation
Partnerships, like sole proprietorships, are not subject to any special taxes. Partners pay taxes on their share of the income that the partnership generates. The business itself, however, does not have to pay taxes.
Stock
a certificate of ownership in a corporation. In other words, if you own stock in a corporation, you are a part-owner of that corporation. If a corporation issues 1,000 shares of stock, and you purchase 1 share, you own 1/1000th of the company.
Assets
money and other valuables
Limited Partnership
only one partner is required to be a general partner. That is, only one partner has unlimited personal liability for the firm's actions. The remaining partner or partners contribute only money.
business franchise
semi-independent business that pays fees to a parent company in return for the exclusive right to sell a certain product or service in a given area
sole proprietorship
the individual owner has the sole burden of making all the business decisions. A sole proprietorship requires the owner to wear many hats, some of which might not fit very well.
Cooperation
is a legal entity, or being, owned by individual stockholders, each of whom faces limited liability for the firm's debts.
