GBUS5 CH4

• It is a business owned and usually operated by one person.
• Some have many.
• Simplest form of business.

• Retailing
• The service industry
• Agriculture

• Ease of start-up and closure
• Pride of ownership
• Retention of all profits
• No special tax
• Flexibility of being your own boss

• Unlimited Liability 
• Lack of continuity 
• Lack of money
• Limited management skills 
• Difficulty in hiring employees

Is as voluntary association of two or more persons to act as co-owners of a business.

• Is a person who assumes full or shared responsibility for operating a business.
• Owned by two or more co-owners.
• If one withdraws from partnership must give notice to creditors, customers, and suppliers.

• Is a person who invests money in a business but who has no management responsibility or liability for losses beyond his or her investment in the partnership.
• General partners collect management fees and receive a percentage of profits.
• Limited partners receive a portion of profits and tax benefits.

• They are an agreement listing and explaining the terms of the partnership.
• They belong to the Partnership Agreement.

• Oral and written.
• Both of them are legal and can be enforced by courts, although a written agreement has more advantages.

• Ease of start-up.
• Availability of capital and credit.
• Personal interest.
• Combined business skills and knowledge.
• Retention of profits.
• No special taxes.

• Unlimited liability.
• Management disagreements.
• Lack of continuity.
• Frozen investment.

Is an artificial person created by law with most of the legal rights of a real person, including the rights to start and operate a business, to buy or sell property, to borrow money, to sue or be sued, and to enter into binding contracts.

Is the shares of ownership of a corporation.

Is a person who owns a corporation's stock.

Is a corporation whose stock is owned by relatively few people and is not sold to the general public.

Is a corporation whose stock can be bought and sold by any individual.

Is a corporation in the state in which it is incorporated.

• Is a corporation in the state in which it is incorporated.
• In all other states where it does business it is called foreign corporation.

Is a corporation in any state in which it does business except the one in which it is incorporated.

• Is a corporation chartered by a foreign government and conducting business in the United States.
• Examples; VW, Sony, Royal Dutch/Shell Corporations.

• 1. Common Stock.
• 2. Preferred Stock.

Is owned by individuals or firms who may vote on corporate matters but whose claims on profits and assets are subordinate to the claims of others.

Is owned by individuals or firms who usually do not have voting rights but whose claims on dividends are paid before those of common-stock owners.

Is a distribution of earnings to the stockholders of a corporation.

Is a legal form listing issues to be decided at a stockholders' to transfer their voting rights to some other individual or individuals.

Is the top governing body of a corporation, the members of which are elected by the stockholders.

Are the chairman of the board, president, executive vice presidents, corporate secretary, treasurer, and any other top executive appointed by the board of directors.

Is a feature of corporate ownership that limits each owner's financial liability to the amount of money that he or she has paid for the corporation's stock.

• Stockholders (owners) elect board of directors.
• Board of directors appoint officers.
• Officers hire employees.

• Limited liability.
• Ease pf raising capital.
• Ease of transfer of ownership.
• Perpetual life.
• Specialized management.

• Difficulty and expense of formation.
• Government regulation and increased paperwork.
• Conflict within the corporation.
• Double taxation.
• Lack of secrecy.

• S-Corporation.
• Limited-Liability Companies.
• Non-for-Profit Corporations.

Is a corporation that is taxed as thought it were a partnership.

Is a form of business ownership that combines the benefits of a corporation and a partnership while avoiding some of the restrictions and disadvantages of those forms of ownership.

Is a corporation organized to provide a social, educational, religious, or other service rather than to earn a profit.

Is an agreement between two or more groups to form a business entity in order to achieve a specific goal or to operate for a specific period of time.

Is a temporary association of individuals or firms organized to perform a specific task that requires a large amount of capital.

Is the purchase of one corporation by another.

Is a situation in which the management and board of directors of a firm targeted for acquisition disapprove of the merger.

Is an offer to purchase the stock of a firm targeted for acquisition at a price just high enough to temp stockholders to sell their shares.

Is a technique used to gather enough stockholder votes to control a targeted company.