19.2 econ Assessment

Capital Formation

• unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm;
• the transfer of money from households to businesses and government through investments and loans
• requirement that an owner is personally and fully responsible for all losses and debts of a busines
• situation in which a firm legally ceases to exist when an owner dies or quits

Limited Life

• unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm;
• the transfer of money from households to businesses and government through investments and loans
• requirement that an owner is personally and fully responsible for all losses and debts of a busines
• situation in which a firm legally ceases to exist when an owner dies or quits

Sole Proprietorship

• unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm;
• the transfer of money from households to businesses and government through investments and loans
• requirement that an owner is personally and fully responsible for all losses and debts of a busines
• situation in which a firm legally ceases to exist when an owner dies or quits

Unlimited Liability

• unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm;
• the transfer of money from households to businesses and government through investments and loans
• requirement that an owner is personally and fully responsible for all losses and debts of a busines
• situation in which a firm legally ceases to exist when an owner dies or quits

Partnership

• form of partnership where one or more partners are not active in the daily running of the business, and whose liability for the partnership's debt is restricted to the amount invested in the business
• form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual,
• people who own a share or shares of stock in a corporation
• unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm

Stockholders

• form of partnership where one or more partners are not active in the daily running of the business, and whose liability for the partnership's debt is restricted to the amount invested in the business
• form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual,
• people who own a share or shares of stock in a corporation
• unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm

limited partnership

• form of partnership where one or more partners are not active in the daily running of the business, and whose liability for the partnership's debt is restricted to the amount invested in the business
• form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual,
• people who own a share or shares of stock in a corporation
• unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm

dividends

• check paid to stockholders, usually quarterly, representing a portion of corporate profits
• certificate of ownership in a corporation; can be either common or preferred stock

Preferred Stock

• most basic form of corporate ownership, generally with one vote per share for stockholders
• form of stock without vote, in which stockholders get their investments back before common stockholders

Common Stock

• most basic form of corporate ownership, generally with one vote per share for stockholders
• form of stock without vote, in which stockholders get their investments back before common stockholders