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Chapter 5
Business Types
| Question | Answer |
|---|---|
| Net Profit | The money left over after all expenses have been paid |
| Franchisor | Parent company |
| Certificate of incorporation | Written permission from the state, acts as a signal individual on behalf of its |
| Stockholders | People who buy shares of a corporation, the actual owners |
| Franchisee | The person who buys from a parent company and is running the business |
| Board of directors | Elected to guide a corporations course, these officers do not go to work |
| Franchise | Grants permission to sell someone else’s products or services in a prescribed manner |
| Dividends | Part of the profits that each stockholder receives |
| Municipal Corporations | Organized to provide services for its citizens with money from taxes |
| Boy Scouts/Girl Scouts | Examples of nonprofit corporations |
| Cooperatives | Owned by each of its members: such as credit unions |