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Ent 1
Obj 1.05 Types of business
| Term | Definition |
|---|---|
| Sole Proprietorship | A business owned by one person who receives all the profits from the business and takes all the risk |
| Stockholders | Owners of stock; also known as shareholders |
| Subchapter "s" corporation | A type of corporation that is limited to 100 or fewer shareholders, has limited shareholder liability, and requires little financial reporting; taxed as a partnership; also known as an "s" corporation |
| Unlimited Liability | Requirement that business owners be responsible for paying business debt; personal assets can be used to pay the debt |
| Merger | Two induvial business that combine to form one organization |
| Multi-level marketing | A business structure that pays commissions on sales earned to people at two or more levels; the sales reprenstatives usually work independently of the company; the reps not only sell products but try to get others to sell them |
| Nonprofit corporation | a legal business structure that primary operates for the purpose of serving others, not to make a profit income is used to cover operational expenses can be exempt from paying some or all taxes |
| operating agreement | a written document signed by members of a limited partnership (LLP) or limited liability company (LLC) that specifies the terms of the terms of their business arrangement |
| partnership | a form of business ownership in which the business is owned by two or more persons |
| Piggyback franchise | a form of ownership in which a retail franchise operates within the facilities of another store, often referred to as the host |
| Private corporation | A type of corporation owned by a few people that does not offer its shares for sale to the general public also known as closely held or close corporation |
| Private enterprise system | A economic system in which individual's and groups rather than the government own or control the means of production also known as free market economy private profit system market system capitalistic system or free enterprise system |
| Pyramid scheme | An illegal form of multi-level marketing in which emphasis is placed on collecting initial fees from as many people as possible |
| Royalty | Fees paid to a parent company that are often based on a percentage of the franchises profits a percentage of actual sales that licensee pays to a licensor usually anywhere form 5 to 15% |
| Shareholders | owners of stock also known as stockholders |
| franchisee | One who buys the right to sell the goods or services of the parent company (Franchisor) |
| Franchising | A method of distributing reconinized goods and services through a legal agreement between two parties |
| Franchisor | A parent company and the owner of the name and or system that is being distributed through a contractual franchising arrangement |
| General Partnership | A type of partnership agreement in which all partners are liable for a business losses also known as ordinary partnership |
| Hybrid structure | A form of business ownership that combines elements of courporations and ethier sole propriteirships |
| joint venture | an arrangement that involves two or more b |
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