| A | B |
|---|
| Sole Proprietorship | business owned by one person |
| Partnership | Business owned and managed by a small group. Written agreement spells out terms of partnership |
| Corporation | Business owned by a number of people. Operated under written permission. |
| Charter | Written permission of state. Also known as certificate of incorporation. |
| Shareholder | People who own stock in company. |
| Franchise | Written contract granting permission to sell someone else's productor service in a prescribed manner. |
| Franchisor | Parent companywho gives permission to sell it's products or services. |
| Franchisee | Person who purchases franchise from parent and agrees to run it in a certain way. |
| Franchise Agreement | States duties and rights of both franchisor and franchisee |
| Extractor | business which grows products or takes raw materials from nature. |
| Processor | Business that changes natural materials into a more finished form for manufacturers to process further. |
| Manufacturer | Business that takes extractor's or processor's product and changes them into a form consumers can use. |
| Wholesaler | Middle firm that assists with the distribution activities between businesses. |
| Retailer | Business that sells directly to consumer |
| Service Firm | Business that does things instead of making or marketing products. |
| Interdependence | When businesses in a privateenterprise system rely on one another to supply particular goods and services. |
| Indirect Marketing | When goods travel through one or more middle firms. |
