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| An establishment formed to carry on advertising enterprise. You are watching: What is the legally bound obligation to pay debts called | |
| Sole proprietorship | A organization owned and managed by a solitary individual. The oldest and most common form of organization organization. |
| Liability | The legally bound obligation to salary debts. |
| Lack the permanence | A sole proprietorship ends through the life that the owner. |
| Partnership | A organization organization own by two or an ext persons. |
| General partnership | Most common form of partnership whereby both partner share responsibility and liability. |
| Limited partnership | Only one companion in a partnership has unlimited an individual liability. |
| Unlimited liability | If a business fails, the owner has to sell an individual property come pay turn off debts. |
| Limited legal responsibility Partnership | All partners have limited liability, for this reason they do not have an individual liability for debt. |
| Assets | Money and also other valuables belonging to an separation, personal, instance or business. |
| Corporation | A legal reality owned by individual stockholders. |
| Stock | A certificate of ownership in a corporation. |
| Closely hosted corporation | Corportation that concerns stock to only a couple of people. |
| Publicly hosted corporation | Corporation the sells stock on the open market. |
| Bond | A officially contract promising to repay borrowed money v interest. |
| Certificate that Incorporation | License to kind a corporation authorize by the state government. |
| Conglomerate | Business combination merging more than three businesses the make unrelated products. |
| Horizontal merger | The combination of 2 or more firms contending in the same industry for the same great or service. |
| Vertical merger | The combination of 2 or an ext firms associated in various stages of creating the same great or service. |
| Dividend | The protion that corporate earnings paid out to stockholders. |
| Multinational coporation, group ((MNC) | Large corporation that produces and sells its goods and also services throughout the world. |
| Business franchise | A semi-independent company that payment fees come a parent agency in return because that the exclusive best to sell a specific product or organization in a particular area. |
| Royalty | Share that earnings offered as payment to franchiser or producer that a an excellent or service. |
| Cooperative | A service organization owned and also operated by a group of people for their common benefit. See more: Which Of The Following Is The Primary Gas Exchange Site? Gas Exchange |
| Non-profit organization | Institution that features much choose a company but does not operate for the objective of make a profit. |
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