| A | B |
|---|
| sole proprietorship | is a business owned by one person. |
| net income/profit | the difference between money taken in and payments for expenses. |
| Unlimited liability | means that the owner's personal assets can be used to pay for any debts of the business. |
| partnership | is a business that is owned by two or more people, but is not incorporated. |
| corporation | is a business that operates as a legal entity separate from any of the owners. It raises money for business activities through the sale of stock to individuals/organizations that want to be part owners. |
| stockholders/shareholders | owners of a corporation with the right to earn dividends and vote on companies policies. |
| dividends | a share of the company's profits that they |
| limited liability | means stockholders are only responsible for the debts of the corporation up to the amount they invested. |
| charter | is the document granted by the state or federal government that allows a company to form a corporation. |
| municipal corporation | is an incorporated town or city organized to provide services for citizens rather than to make a profit. |
| nonprofit corporations | are created to provide a service and are not concerned with making a profit. |
| cooperative | is a business owned by tis members and operated for their benefit. Formed by a group of people in a community or at a place of worship. |
