Businesses 101
This entity is an organization or activity that provides goods or services in exchange for value.
What is a business?
A _____ is an independently owned and operated business that is relatively small in terms of employees, revenue, and market reach compared with larger companies.
What is a "Small Business"?
A ____ is the undertaking by two or more persons or business entities to combine their efforts or their property for a single transaction or project, or for a related series of transactions or projects.
What is a "Joint Venture"?
This is a legal entity created and recognized by state law.
What is a Corporation?
How many business entities are recognized in Minnesota?
This entity may operate for profit or as nonprofit entities and can range from a single owner to large organizations
What is a business?
A ____ is a business arrangement in which the owner of an established brand—the franchisor—allows another person or business—the franchisee—to operate a business using its name, trademarks, products, systems, and business model.
What is a Franchise?
A group of individuals or firms that join together to finance a project; also called an investment group.
What is a Syndicate?
A company whose business activity is holding shares in another company.
What is a "Holding Company"?
How many different types of businesses does the book discuss?
Four (manufacturing, service, merchandising and hybrid)
This entity combines two or more business types?
What is a hybrid business?
A ______ is a business relationship in which two or more people agree to carry on a business together as co-owners. The partners typically contribute money, property, skills, or services and share in the business's profits and losses.
What is a "Partnership"?
A hybrid form of business organization that combines characteristics of a corporation and a partnership. Usually, a is regarded as a partnership for tax and other legal purposes.
What is a "Joint Stock Company"?
This individual owns the corporation, has no responsibility for the daily management of the corporation, is responsible for choosing and overseeing Board of Directors, approves fundamental changes of Corporation, and meets annually, or according to Bylaws.
What is a "Shareholder"?
An agreement in which the members of a limited liability company set forth the details of how the business will be managed and operated.
What is an "Operating Agreement"?
This type of business provides expertise or intangible services?
What is a "Service" business
This is a hybrid form of business enterprise that offers the limited liability of a corporation and the tax advantages of a partnership.
What is a "Limited Liability Company"?
A form of business organization, created by a written agreement, that resembles a corporation.
What is "Business trusts"?
Inspection,Participation, and Indemnification
What are Director Rights?
Under Minnesota law, a _____ can arise when two or more persons associate to carry on as co-owners of a business for profit — whether or not they intended to form a partnership.
What is a Partnership?
When choosing a structure, business owners should consider:
1. Liability: Are the owners' personal assets exposed to business obligations?
2. Ownership: Will there be one owner, multiple owners, investors, or members?
3. Management & Control: Who has authority to make decisions and bind the business?
4. Taxes: How will the entity and its owners be taxed?
5. Governance: What documents and procedures govern relationships among the owners?
6. Growth & Capital: Will the business seek investors, add owners, or transfer ownership?
7. Continuity: What happens if an owner dies, leaves, becomes disabled, or wants to sell?
What are business considerations?
This occurs when a member ceases to be associated in the carrying on of the LLC business.
"An association, which may or may not be incorporated, that is organized to provide an economic service to its members."
What is a "Cooperative"?
The hired by the Board, responsible for carrying out the duties articulated in the bylaws and are agents of the corporation, and are fiduciaries to the corporation and Directors
What are Corporate Officers?
A corporation owned by a federal, state, or municipal government—not to be confused with a publicly held corporation. Examples include U.S. Postal Service or AMTRAK
What are Public Corporations?