| A | B |
|---|
| C-corporation | The most common form of corporation which protects the entrepreneur from being personally sued. |
| Corporation | A business that is chartered by a state and legally operates apart from its owners |
| Franchisee | A person who purchases a franchise agreement |
| Franchisor | The person or company who sells a franchise. |
| Franchise | A legal agreement that gives an individual the right to market a company’s products or services. |
| General Partnership | A partnership in which all partners have unlimited personal liability. |
| Initial Franchise Fee | The fee the franchise owner pays in return for the right to run the business. |
| Joint Venture | A partnership in which two companies join to complete a specific project. |
| Limited Liability | The owners of a business are liable only up to the amount of their investment in the business. |
| 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. |
| Nonprofit Corporation | Legal entities that make money for reasons other than the owner’s profit. |
| Partnership | A form of business ownership in which two or more people share the assets, liabilities, and profits. |
| Public Goods | Goods from which everyone receives benefits. |
| Sole Proprietorship | A business owned and operated by one person. |
| Strategic Alliance | A partnership in which two businesses work together for mutual benefit. |
| Subchapter S Corporation | A corporation that is taxed as a sole proprietorship or partnership. |
| Unlimited Liability | The debts of the business must be paid from the personal assets of the owner. |
