| A | B |
|---|
| franchise | an agreement with a company to use their name and sell their products in a given area |
| franchisee | the owner of a franchise |
| factors of production | resources, including: land, labor, capital and entrepreneurship |
| land | includes all the resources that are from the land, sea or air. these are conisdered raw materials |
| capital | resources include money, buildings, or equipment that is used to run a business |
| labor | includes all the resource of people that work |
| economic resources | also known as factors of production include all the items that are used to produce goods and services |
| entreprenuer | people who create, start and manage new businesses |
| Subchapter S corporation | a tax election that the owner may take to run their earnings and profits through to shareholders as earnings |
| Corporation | a legal entity that is owned by several people(stockholders) that have limited liability |
| partnership | a business that is owned by two or more people that are bound in a legal agreement. all ____ are jointly responsible for the success or failure of the business |
| Sole Proprietorship | business that is owned by a single owner that provides the money and skill to run the business |
| limited partnership | a type of ownership where each limited partner is only liable for debt up to the amount they have invested in the business |
| general partnership | a type of ownership where each partner has unlimited liability |
| franchisor | the owner of the parent company that grants the rights to use their name and products |
