Business Organizations

2. A disadvantage of the sole proprietorship is that the business has a ____ life, meaning that the firm legally ceases to exist when the owner dies, quits or sells the business.
3. Sole proprietorships only account for about ___% of total sales in the US.
5. The amount borrowed.
7. The main disadvantage of the sole proprietorship is that the owner of the business has unlimited ____.
8. The price paid for the use of another's money.
9. This is a written promise to repay the amount borrowed at a later date.
13. ____ stock represents nonvoting ownership shares of the corporation.
14. The actual owner of the business that lets other investors rent or lease its name.
15. Another disadvantage of a partnership is the potential for ____ between partners. Sometimes partners discover that they do not get along or work well together.
17. This is a temporary business investment that involves renting or leasing another firm's successful business model.
20. A major disadvantage of a corporation is ____ taxation of corporate profits.
21. If a corporation is profitable, it may eventually issue a ___ which is a check that transfers a portion of the corporate earnings to each stockholder.
22. The ____ proprietorship is a business owned and run by a single individual.
23. This is a form of business organization recognized by law as a separate legal entity with all the rights of an individual.
24. The investor who rents or leases the business model from the franchisor.

1. An advantage of the partnership is that they can usually attract ____ capital more easily than sole proprietorships.
4. ____ liability means that the owner is personally and fully responsible for all losses and debts of the business.
6. One advantage of a sole proprietorship is that the business does not have to pay separate business income ____ because the business is not recognized as a separate legal entity.
8. One disadvantage of a sole proprietorship is that they may carry a minimum ____ which is the stock of finished goods and parts in reserve.
10. A disadvantage of the general partnership is that each partner is fully ____ for the acts of all other partners.
11. This is the type of business that is jointly owned by two or more persons.
12. The limited partnership has at least one ____ that is not active in the daily running of the business and has limited responsibilities for the business.
16. ____ stock represents basic ownership of a corporation and each share usually has one vote to elect a board of directors.
18. The government document that gives permission to create a corporation.
19. This type of partnership is the most common and all partners are responsible for the management and financial obligations of the business.
22. The charter for a corporation specifies the number of shares of ____, or ownership certificates, in the firm. These shares are sold to investors called stockholders.