Term
| Define business organization. |
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Definition
| A business organization is an establishment formed to carry on commercial enterprise. A company or firm. |
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Term
| Define sole proprietorship. |
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Definition
| A sole proprietorship is a business owned and managed by a single individual. |
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Term
| What is the most popular form of business ownership in the US? |
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Definition
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Term
| What are some of the advantages of having a sole proprietorship? |
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Definition
| There are relatively few regulations, the proprietor receives all the profits from the business,full control of the business and easy to discontinue. |
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Term
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Definition
| A liability is a legally bound obligation to pay debts. |
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Term
| What are some disadvantages of a sole proprietorship? |
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Definition
| Disadvantages of a sole proprietorship: unlimited personal liability, limited access to resources,and lack of permanence. |
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Term
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Definition
| Fringe benefits are payments to employees other than wages or salaries, such as paid vacation, retirement pay and health insurance. |
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Term
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Definition
| A partnership is a business organization owned by two or more persons who agree on a specific devision of responsibilities and profits. |
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Term
| What is a general partnership. |
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Definition
| A general partnership is one in which partners share equally in both responsibility and liability. |
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Term
| What is a limited partnership? |
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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. |
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Term
| What is a limited liability partnership? |
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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. |
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Term
| What are some of the advantages of a partnership? |
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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. |
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