Business Structures

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What is a Corporation?

Back

A legal entity that is separate from its owners, providing limited liability to its shareholders.

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What does 'Limited Liability' mean?

Back

Shareholders are not personally responsible for the debts and liabilities of the corporation.

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What is a Partnership?

Back

A business structure where two or more individuals share ownership and responsibilities.

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What is a Sole Proprietorship?

Back

A business owned and operated by a single individual, who is personally liable for its debts.

Front

What is 'Liability' in a business context?

Back

The state of being responsible for something, especially by law.

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What is a Business Contract?

Back

A legally binding agreement between two or more parties outlining the terms of a business relationship.

Front

What is Bankruptcy?

Back

A legal process through which individuals or businesses unable to meet their financial obligations can seek relief.

Front

What is a Shareholder?

Back

An individual or entity that owns shares in a corporation and has a claim on part of the corporation's assets and earnings.

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What is a Limited Liability Company (LLC)?

Back

A flexible business structure that combines the limited liability of a corporation with the tax efficiencies of a partnership.

Front

What is a Franchise?

Back

A business model where a franchisee pays for the rights to operate a business under the franchisor's brand and system.