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Details Title: Business Organization Description: Ch.8-9, 12NR Total Flash Cards: 12 Created: 11/17/2005 06:17:50	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term Define business organization. Definition A business organization is an establishment formed to carry on commercial enterprise. A company or firm. Term Define sole proprietorship. Definition A sole proprietorship is a business owned and managed by a single individual. Term What is the most popular form of business ownership in the US? Definition Sole proprietorship Term What are some of the advantages of having a sole proprietorship? Definition There are relatively few regulations, the proprietor receives all the profits from the business,full control of the business and easy to discontinue. Term Define liability. Definition A liability is a legally bound obligation to pay debts. Term What are some disadvantages of a sole proprietorship? Definition Disadvantages of a sole proprietorship: unlimited personal liability, limited access to resources,and lack of permanence. Term Define fringe benefits. Definition Fringe benefits are payments to employees other than wages or salaries, such as paid vacation, retirement pay and health insurance. Term Define partnership. Definition A partnership is a business organization owned by two or more persons who agree on a specific devision of responsibilities and profits. Term What is a general partnership. Definition A general partnership is one in which partners share equally in both responsibility and liability. Term What is a limited partnership? Definition A limited partnership is one in which only partner is required to be a general partner. Only one partner has unlimited personal liability for the firm's actions. The remaining partners contribute only money and do not actively manage the business. Term What is a limited liability partnership? Definition In a LLP, all pertners 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. Term What are some of the advantages of a partnership? Definition A partnership is easy to start, share the decision making, have a larger pool of capital and are not subject to any special taxes.