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small biz vocab 3
Question | Answer |
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: The most common form of corporation. It protects the entrepreneur from being personally sued for the actions and debts of the corporation. | C-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: |
A person who purchases a franchise agreement | Franchisee: |
The person or company who sells a franchise. | Franchisor: |
A partnership in which all partners have unlimited personal liability and take full responsibility for the management of the business. | General partnership |
The fee the franchise owner pays in return for the right to run the business. | Initial franchise fee |
: 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: |
): A new form of business ownership that provides tax advantages and limited liability. | Limited Liability Company (LLC |
A partnership in which the partners’ liability is limited to their investment. | Limited partnership: |
: Legal entities that make money for reasons other than the owner’s profit. | Nonprofit corporation |
A form of business ownership in which two or more people share the assets, liabilities, and profits. | Partnership |
Goods from which everyone receives benefits. | Public goods |
A business owned and operated by one person. | Sole proprietorship |
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: |
The debts of the business must be paid from the personal assets of the owner. | Unlimited liability: |