Sole proprietorships
are businesses owned by one person
Partnership
an association of two or more persons who carry on as co-owners of a business for profit
Types of Partnership
general and limited partnership
A general partnership
involves partners sharing completely the management of a business and the liability for its debts
A limited partnership
has at least one general partner who assumes unlimited liability and at least one limited partner whose liability is limited to the amount of investment in the business. a. Limited partnerships exist for risky investment projects where the chance of loss is great.
Articles of partnership
are legal documents that set forth the basic agreement between partners
Corporation
is a legal entity created by the state, with assets and liabilities distinct from those of the owner of the corporation
Types of Corporation
private and public corporations
A private corporation
is owned by only one person or a few people closely involved in its management
A public corporation
is one whose stock anyone may buy, sell, or trade
Dividends
profits of a corporation that are distributed in the form of each payments to stockholders
Joint venture
a partnership established for a specific project or for a limited time
S corporation
corporation taxed as though it were a partnership with restrictions on shareholders
Limited Liability Company (LLC)
form of ownership that provides limited liability and taxation like a partnership but places fewer restrictions on members
Merger
the combination of two companies (usually corporations) to form a new company
Acquisition
the purchase of one company by another, usually by buying its stock
Preferred Stock
a special type of stock whose owners, though not generally having a say in running the company, have a claim to profits before other stockholders do
Common Stock
stock where owners have voting rights in the corporation, yet do not receive preferential treatment regarding dividents
Quasi-public corporation
corporations owned and operated by the federal, state, or local government. They provide public services such as transportation or utilities, while striving for profitability, similar to provide companies
Nonprofit corporation
corporations that focus on providing a service rather than earning a profit but are established for charitable, educational, scientific or other public purposes
Board of directors (BoD)
a group of individuals, elected by th stockholders to oversee the general operation of the corporation, who set the corporation long-range objectives
