1. 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. 1.Funds and freedom to create a special unit 2.Freedom to run their operation 3.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. 1.Sole Proprietorship 2.Partnership 3.Corporation

8. Name the 3 basic features for the structure of a corporation 1.Stockholders 2.Directors 3.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. 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. 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. 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. 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