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BBI Test

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fadoboci's version from 2016-10-19 03:04

Section

Question Answer
Limited liabilityIs the personal assets of the owners cannot be used to repay debts I.e. Corporations
Unlimited liabilityIs personal assets of the owners can be used to repay business debts I.e. Partnerships/sole proprietorship
General partnershipAt least one partner has unlimited liability
Limited partnershipBusiness debts are repaid using partner's investments in that business
Private corporationSmall businesses that don't sell share to the public
Public corporationLarge business that sell shares publicly to the stock exchange
FranchiserSupplier of a business
FranchiseeBuyer of a business
Crown corporationFed/gov owned business
Municipal corporationCity owned business
Who owns a corporation?Shareholders
Who runs a corporation?Board of Directors/top executives
How much control over the company does a shareholder have?The more shares a shareholder has the more control they have
DividendPart of a corporation profit that each shareholder receives
Does a shareholder have limited liability or unlimited liability?limited liability
SOHOSmall Office HOme based business
E-commerceOnline marketplace/where people meet without face to face contact
Debt financing Refers to borrowing money to run a business
Equity financingIs using your savings/an investors savings to run a business
Service business A service is sold at the business
Retail businessSells material items for profit
Merchandising businessBuys and resells at a higher price
Manufacturing businessProducts produced from raw materials then sold to consumers
memorize

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