CGS 2100C Chapter Notes - Chapter 1: North American Industry Classification System, Limited Liability Partnership, Limited Liability
Document Summary
What is business: business- a state or quality of being busy, a business in a capitalist economy is also known as an enterprise/firm that can be: Is owned by several persons or other companies. Capital contribution can be any form of asset. Main goal of owners is to make as much profit as possible. Business classification: sic (standard industrial classification) classifies organizations w/ a 4- digit code, naics (north american industry classification system) classifies businesses according to type of economic activity. Business ownership categories: sole proprietorship: for-profit business owned by one person. Owner may operate the business alone or hire others. Owner is liable for all debts incurred by the business: partnership: for-profit business owned by two or more people. Each partner has liability for debts: three types of partnerships: General partnership: partners conducting a business jointly have unlimited liability, so their personal assets are liable to the part(cid:374)ership"s i(cid:374)(cid:272)urred de(cid:271)ts a(cid:374)d o(cid:271)ligatio(cid:374)s.
