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Sole Proprietorship
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ECON 2a - Bus. Org.

Business Organizations and Mergers

TermDefinition
Sole Proprietorship Business owned by a single person
Partnership Business owned by two or more people
Corporation Business made up of a group of people authorized to act as a single entity and recognized as such in law
Liability Being responsible for something by law
Unlimited Life Continuing to exist even after an owner dies, leaves the business, or transfers his or her ownership
Vertical Merger Business firm acquires another firm that is involved in different stages of manufacturing
Horizontal Merger Businesses combine into one entity, both produce the same kind of product
Franchise Agreement between company and franchisee giving him rights to sell product
Created by: ddenson80
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