Business Organization

Business that is owned and operated by those using its services; also called a

co-op.

• cooperative

• North American Industry Classification System (NAICS)

• partnership agreement

• dividend

Group of individuals who make high-level management decisions for a business and establish company policies.

• wholesaler

• board of directors

• stock

• consumer market

John starts a new business and is considering the structure that will best protect his personal assets from business debts and claims. This consideration is known as:

• intermediary

• limited liability company (LLC)

• liability

• proprietorship

Business that is legally separate from its owners and has most of the legal rights of an actual person

• intermediary

• service business

• partnership agreement

• corporation

form of business ownership that combines the benefits of a corporation with those of proprietorships and partnerships.

• proprietorship

• partnership

• corporation

• limited liability company (LLC)

Written contract that establishes a partnership; also called the articles of partnership.

• articles of corporation

• partnership agreement

• articles of proprietorship

• articles of limited liability corporation (LLC)

Business is owned and often operated by a single individual.

• partnership

• proprietorship

• corporation

• LLC

Association of two or more persons who co-own a business with the objective of earning a profit.

• proprietorship

• partnership

• corporation

• LLC

The two kinds of partnership are

• general

• unlimited

• limited

• cooperative

Which is not an advantage of a partnership form of ownership?

• Limited liability

• Easy to start

• Combined financial resources

• Simple tax structure