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Forms of Businesses
Term | Definition |
---|---|
Partnership | a business owned by two or more persons who share the risks and rewards |
Stock | shares of ownership in a corporation |
Intermediary | business that acts as a go between in moving goods from producers to consumers, such as wholesalers, retailers, and distributors |
Sole proprietorship | a business owned by only one person |
Corporation | a business treated by law as separate from its owners |
Processors | businesses that change raw goods into more finished products |
Manufacturers | businesses that make finished products out of raw processed goods |
Unlimited liability | full legal and financial responsibility for a business |
Limited liability | financial responsibility of business owners only for what they invested in a business |
Franchise | a contractual agreement to use the name and sell the goods or services of an existing company |
Nonprofit organization | a business whose main purpose is to provide a service rather than to make a profit |
Cooperative | an organization of businesses owned and operated by the members, who pool their resources and share the benefits |
Producer | a business that gathers raw products in their natural state |
Wholesaler | a type of business that buys goods in large amounts and resells them to other businesses in smaller lots |
Retailer | a business that sells goods or services directly to the public |