| A | B |
|---|
| corporation | type of business organization owned by many poeple but treate by law as though it were a person; it can own property, pay taxes, make contracts, etc. |
| stock | share of ownership in a corporation that entitles the buyer to a certain part of the future profits and assets of the corporation |
| limited liability | requirement in which an owner's responsibililty for a company's debts is limited to the size of the owner's investment in the firm |
| articles of incorporation | documents listing basic information about a corporation that is filed with the state where the corporation will be headquartered |
| corporate charter | license to operate granted to a corporation by the state where it is established |
| common stock | shares of ownership in a corporation that give stockholders voting rights and a portion of future profits (after holders of preferred stock are paid |
| dividend | portion of a corporation's profits paid to its stockholders |
| preferred stock | shares of ownership in a corporation that give stockholders a portion of future profits (before any profits go to holders of common stock), but no voting rights |
| franchise | contract in which one business (the franchhiser) sells to another business (franchisee) the right to use the franchiser's name and sell its products |
