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Unit Vocab 3
Question | Answer |
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C-corporation | The most common form of corporation. It protects the entrepreneur from being personally sued for the actions and debts of the corporation |
A business that is chartered by a state and legally operates apart from its owners | Corporation |
A legal agreement that gives an individual the right to market a company’s products or services in a particular area | Franchise |
Franchisee | A person who purchases a franchise agreement. |
Franchisor | The person or company who sells a franchise |
A partnership in which all partners have unlimited personal liability and take full responsibility for the management of the business. | General partnership |
Initial franchise fee | The fee the franchise owner pays in return for the right to run the business |
A partnership in which two companies join to complete a specific project. The partnership ends after a specified period of time. | Joint venture |
The owners of a business are liable only up to the amount of their investment in the business. | Limited liability |
Limited Liability Company (LLC) | A new form of business ownership that provides tax advantages and limited liability. |
Limited partnership | A partnership in which the partners’ liability is limited to their investment |
Legal entities that make money for reasons other than the owner’s profit | Nonprofit corporation |
Partnership | A form of business ownership in which two or more people share the assets, liabilities, and profits. |
Goods from which everyone receives benefits | Public goods |
Sole proprietorship | A business owned and operated by one person |
A partnership in which two businesses work together for mutual benefit. | Strategic alliance |
A corporation that is taxed as a sole proprietorship or partnership | Subchapter S corporation |
Unlimited liability | The debts of the business must be paid from the personal assets of the owner |