Key Terms

leanger napterrs

________ __________ all have unlimited personal liability and take full responsibility for the management of a business.

________ __________

mildeti tailbiliy

One advantage of corporations is that their shareholders have ___________ in the corporation, meaning they are liable only up to the amount of their individual investments.

________ _________

yitiballi

Money owed to others is called ________

__________

Delitim iiblayitl canymop

A(n) __________ __________ ________ is a form of business organization that has limited liability for its members and also has the pass-through tax advantages of a partnership.

________ _________ _____

sentphairpr

More than one owner share the business’s decisions and outcomes in a(n) ________________

___________

C-corntorpoai

The most common corporate form, the __________ protects the entrepreneur from being sued personally for actions or debts of the corporation.

________________

Dimetinul ailtyilbi

When all debts incurred by a firm must be paid from the owner’s own assets, the owner has ___________ for the business.

_________________

nno-pftiro satopocorirn

Charities and religions are two types of ________ ________, which make money for reasons other than the owners’ profit.

___________________

tiledim rentrap

A(n) ________ _______’s liability is limited to his or her investment.

_________ _________

pthebarcsu s toinapcorrro

In a(n) ________ _ _______, profits pass through the corporation and are taxed only once at the shareholder rate.

_________ ____ __________

leso piershirtpopor

In a(n) _______ _______, the owner is the only person responsible for the business’s activities and is the only one who receives profits.

______ _________

Scenario 4You are considering purchasing a business that is

for sale in your hometown. This is your opportunity of becoming a business owner by purchasing an existing business. Mr. Jacobs, the present owner, wishes to retire so he is looking for someone to purchase his business including the inventory and shop. After some market research and auditing his books, you decide to purchase the business.

.

Scenario 5Your family owns a restaurant in town. You are

trying to talk them into opening a new restaurant across town near the university. You would be willing to run the new restaurant as a part of their business. With extra or old equipment, startup costs would be relatively low. Being new to the business, you will receive pay based upon a percent of the profit of the new restaurant. The family will also receive a percent of the profit for their support of the new restaurant.

Scenario 7Sarah decided on a hot day in July that she

wanted to sell lemonade on her street from 4:00 until 6:00 when neighbors and friends were returning home from work.  She talked with her mother about her plan.  She and her mom figured what it would cost her to make a gallon of lemonade and the cost for cups and ice.  They then calculated how much she would need to charge for each cup.  Sarah had to pay for her supplies but any money left was her profit.

Scenario 3Janet found an article in the paper of a company

that has a new makeup product to go on the market. The company is looking for people to join in their venture by making cash donations. Each person contributing will sign a business agreement and other required legal documents. Each investor will receive income based upon the amount of their investment of the $125,000. If you contributed $5,000, you would receive 4% of the net profit as a return. Each investor would be given a document indicating their share of ownership..