Business Organization Vocab

Front

A business owned and run by one person with all profit rights and unlimited debt liability is a

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sole proprietorship

Front

Owner fully responsible for all business losses and debts.

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unlimited liability

Front

Firm ceases to exist when owner dies or quits:

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limited life

Front

Unincorporated business owned by 2+ people sharing profits with unlimited liability.

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Partnership

Front

Most common type where all partners share management and financial responsibilities.

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General partnership

Front

At least one partner is not active in daily business and has limited responsibility for debts.

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Limited partnership

Front

Business organization recognized as a separate legal entity with individual rights.

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corporation

Front

Government document granting permission to create a corporation

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Charter

Front

Certificate of ownership in a corporation

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Stock

Front

People who own stock in a corporation

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Stockholders