| A | B |
|---|
| sole proprietorship | business that is owned and operated by one owner |
| liability protection | insurance against debts and actions of a business |
| unlimited liability | full responsibility for all debts and actions of the business |
| partnership | unincorporated business with two or more owners who share the decisions, assets, liabilities and profit |
| general partner | participant in a partnership who has unlimited personal liability and takes full responsibility for managing the business |
| limited partner | partner in a business whose liability is limited to his or her investment, a limited partner cannot be actively involved in the managing of the business |
| corporation | business that is registered by a state and operates apart from its owners |
| S corporation | corporation that is taxed like a partnership, profits are taxed only once at the shareholder's personal tax rate. |
| limited liability | partial responsibility of a corporate shareholder, only responsible up to the amount of the investment |
| non-profit corporation | a legal entity that makes money and operates for reasons other than the the owner's profit |
| limited liability corporation | company whose owners and managers have limited liability and some tax benefits, but avoids some restrictions of the Subchapter S corporation |
| franchisee | buyer of a franchise who is given the right to its product, process or sevice |
| franchise | legal agreement to begin a new business in the name of a recognized company |
| franchisor | the seller of a franchise who is giving the buyer its planning and management expertise |
| royalty fee | percentage of revenues or net income paid by the franchisee to the franchisor |
| advertising fee | fee charged to a franchise by the franchisor for advertising expense |
| initial franchise fee | the original amount of monies paid to the franchisor |
| shareholders | owners of the corporation |
