1. Partnership Agreement
To avoid disagreements on the division of profits, partnerships should have ___________.
Partnership Agreement

2. The most important written document that describes a business, its goals, and how to achieve them is called ____________.
A Business Plan

3. Ownership of a corporation is divided into parts called ________.
Shares

4. Name at least one of the basic rights of stockholders.
Transfer Ownership
Vote for Members of the Board
Receive Dividends

5. Name 3 characteristics of an intrapreneur’s job.
Funds and freedom to create a special unit
Freedom to run their operation
Freedom on how to manage

6. What would be the simplest ownership of a person wanting to be the sole owner of a new business?
Proprietorship

7. Name the 3 types of business ownerships.
Sole Proprietorship
Partnership
Corporation

8. Name the 3 basic features for the structure of a corporation
Stockholders
Directors
Officers

9. Definition: An employee who is given funds and freedom to create a special unit or department with a company in order to develop a new product, process or service.
Intrapreneur

10. Limited Liability Partnership
Definition: A partnership in which each partner’s liability is limited to his or her investment in the partnership.
Limited Liability Partnership

11. Definition: Owners of a corporation.
Stockholders

12. Limited Liability Company
Definition: Special type of corporation allowed by states that is taxed as if it were a sole proprietorship or partnership.
Limited Liability Company

13. Definition: Corporation that offers its shares of stock for public sale.
Open Corporation

14. Definition: Business owned and managed by one person.
Proprietor

15. Definition: Ruling body of a corporation.
Board of Directors

16. Definition: Business owned by two or more people.
Partnership

17. Definition: Corporation that does not offer its shares of stock for public sale.
Close Corporation

18. Nonprofit Corporation
Definition: Organization that does not pay taxes and does not exist to make a profit.
Nonprofit Corporation

19. Definition: Official document through which a state grants the power to operate as a corporation.
Charter

20. Unlimited Financial Liability
Definition: When each partner is personally liable for all the debts incurred by the partnership.
Unlimited Financial Liability

21. Calculate profit/loss in proportion to investment Jan invested $40,000 and Tina invested $20,000. Last year’s profit was $12,500. (Be able to show all work)
Jan $40,000 + $20,000 = $60,000
$40,000/$60,000 = .67
.67 x $12,500 = $8,375
Tina $40,000 + $20,000 = $60,000
$20,000/$60,000 = .33
.33 x $12,500 = $4,125