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