| human capital | The collective skills, talents, and knowledge of a business’s employees
(See page(s) 141)
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| sole proprietorship | A business that is owned and operated by one person
(See page(s) 144)
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| general partnership | A business in which every partner is involved in the management of the firm and is responsible for the liabilities of the firm
(See page(s) 145)
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| limited partnership | A business in which some owners do not manage the operations of the business and their liability is limited to what they invested in the company
(See page(s) 145)
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| C corporation | A business that pays taxes on earnings and whose shareholders also pay taxes on dividends paid to them
(See page(s) 145)
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| Subchapter S corporation | A corporation that is taxed like a partnership; income is passed through to the shareholders, whose tax returns report the corporation’s income or loss
(See page(s) 145)
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| limited liability company | A business in which the owners, who are called “members,” have tax benefits and limited liability; it is dissolved when a member dies or files for bankruptcy
(See page(s) 145)
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| financial risk | The potential loss of money, property, or sales
(See page(s) 146)
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| legal risk | The possibility that a business owner and a company can be sued
(See page(s) 146)
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| premium | An agreed upon amount that a business will pay to receive a designated amount of coverage from an insurance company
(See page(s) 146)
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