BUSINESS ORGANIZATIONS Entrepreneur An entrepreneur is a person

BUSINESS ORGANIZATIONS

Entrepreneur An entrepreneur is a person who has possession of a new enterprise, venture or idea and is accountable for the inherent risks and the outcome

Sole Proprietorship A type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and the business. The owner receives all profits (subject to taxation specific to the business) and has unlimited responsibility for all losses

Partnership A partnership is an arrangement where entities and/or individuals agree to cooperate to advance their interests. In the most frequent instance, a partnership is formed between one or more businesses in which partners (owners) co-labor to achieve and share profits or losses.

Limited liability is a concept whereby a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a company or partnership with limited liability. In other words, if a company with limited liability is sued, then the plaintiffs are suing the company, not its owners or investors.

Unlimited liability The liability of the owner of a business for all the obligations of the business. An owner's personal assets can be seized if the business's assets are insufficient to satisfy claims against it. The placement of personal assets at risk is a great disadvantage of proprietorships and general partnerships.

Incorporation is the forming of a new corporation (a corporation being a legal entity that is effectively recognized as a person under the law). The corporation may be a business, a non-profit organization, sports club, or a government of a new city or town.

Stocks Also known as shares: It is a piece or “share” of a company.

Bonds A debt security held until maturity.

Dividend Dividends: Payment to stock holders based on profits.

Reinvestment Using the dividends, interest, or profits from an investment to buy more of that investment, rather than receiving a cash payout.

Horizontal Merger A merger occurring between companies producing similar goods or offering similar services.

Vertical Merger A merger between two companies producing different goods or services for one specific finished product

Conglomerate A conglomerate is a combination of two or more corporations engaged in entirely different businesses together into one corporate structure, usually involving a parent company and several (or many) subsidiaries. Often, a conglomerate is a multi-industry company. Conglomerates are often large and multinational.

Multinational A multinational corporation (MNC) or enterprise (MNE), is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation. The International Labor Organization (ILO) has defined an MNC as a corporation that has its management headquarters in one country, known as the home country, and operates in several other countries, known as host countries.

Cooperatives A cooperative (also cooperative; often referred to as a co-op) is a business organization owned and operated by a group of individuals for their mutual benefit.