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ECON 2a - Bus. Org.
Business Organizations and Mergers
| Term | Definition |
|---|---|
| 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 |