Partnership Business owned by 2 or more people.
Corporation A business owned by stockholders, but having all rights of an individual.
Sole Proprietorship advantages easy to start, enjoys all profit, business is tax exempt, satisfaction, ease of getting out
Sole Proprietorship disadvantages unlimited liability, difficulty raising capital, limited managerial experience, attracting qualified employees, limited life
Partnership advantages easy to start, each partner brings skills, business tax exempt, attract capital easier, more efficient
Partnership disadvantages getting along with other partner, limited life
Corporation advantages easy to raise capital, hire professional managers, limited liability, unlimited life.
Corporation disadvantages expensive charter, owners have little say in how business is ran, double taxation, more gov't regulation.
inventory How much of a product you have in stock (in store)
unlimited liability owner is fully responsible for all debts & losses of the business.
limited life business dies when the owner dies or quits.
bankruptcy court granted permission to cease or delay debt payments that hurts personal credit rating.
charter government permission to establish a corporation
stock ownership certificates in a corporation
bond a written promise to repay later
principal amount originally borrowed
interest price paid for use of another's money
horizontal merger Two businesses merge that are exactly the same.
vertical merger When businesses merge that are different steps in the production process
conglomerate Firm with 4 businesses making unrelated products with none responsible for a majority of profit.
multinational Corporation with operations in different countries
multinational advantages Transfer new technology, create new jobs, & generate revenue for host…