Vocabulary
Is a person or company that owns at least a piece of business, usually a corporation.
Shareholders
A business owned and operated by one person. The owner and business are the same legal entity.
It is important to draft out what document when you are in a partnership?
Contract
This organization seeks investors
For porfit
Name one Advantage and disadvantage of Sole Proprietorship?
Advantages; lower start up costs, flexibility, profit goes to you
Disadvantages; Difficult to raise capital, liable for EVERYTHING
Financial assets-money, property, used to start a business
Capital
Define Partnership
A partnership is when two or more people team up to own and run a business together. They split the work, the money earned, and the risks.
Name one for profit and one non profit organization?
Teacher will check answers
This organiztion does extensive research to find their ideal customer.
For profit
Name one Advantage and disadvantage of Partnership?
Advantages; shared responsibilities, access to better resources
Disadvantages; Earning are split, partners are responsible if the business owes money
Define Hybrid
Hybrid means a mix of two different things combined into one.
Separate legal entity owned by shareholders
Corporation(c corp)
Define Taxation
Paying taxes on your profit
What is the difference for profit and non profit when it comes to staffing?
For profit- paid employees
Non profit- Volunteers
Name one advantage and one disavantage of Corporation?
Disadvantages; Double taxed, higher cost to start
Advantages; Easy access to capital, limited liability
Define Liability
In business, liability is a legal or financial responsibility that a person or company owes to someone else. It usually means debts or obligations that must be paid.
Passes income/losses to shareholders to avoid double taxation.
S Corporation
Owners of a corporation are called? Owners of a LLC are called?
Shareholders
Members
Explain the PURPOSE of a non-profit and for-profit organization?
For-profit- Create a product or service for customers and generate a profit!
Non-profit- Provide a service to the community without the intention of earning a profit.
Passes income/losses to shareholders to avoid double taxation.
S Corporation
An entity is like a “thing” or “unit” that stands on its own. In business, it means the company is treated like its own “person” in the eyes of the law—it can make money, owe money, and sign agreements, separate from the people running it.
A hybrid structure offering limited liability with partnership-like tax benefits.
Limited Liability Company(LLC)
BLANK
Describe the culture of a for-profit organization and non-profit organization?
For-profit- Focused on improving sales and profits, making money for their shareholders.
Non-profit- Culture is the shared values, beliefs, and behaviors that guide how people in the nonprofit work together, make decisions, and serve their community (Community-minded)
Owners aren’t liable for company’s debts or lawsuits
LLC