| A | B |
|---|
| public sector | All government-funded services. |
| private sector | All businesses not funded by the government. |
| competition | The struggle among businesses for customers. |
| price competition | The struggle for business that assumes consumers will choose the lowest priced products available. |
| nonprice competition | The struggle for business that relies on factors other than price to attract and keep customers. |
| market | The field of exchange that takes place between buyers and sellers. |
| oligopoly | A market condition characterized by the existence of a few large businesses in a market. |
| monopoly | A market condition characterized by the existence of only one supplier in a market. |
| profit | The money left over after paying the expenses of doing business. |
| sole proprietorship | A business owned by one person. |
| entrepreneur | An individual who takes the risk of starting a new business. |
| Employer Identification Number (EIN) | A number assigned by the Internal Revenue Service, which is used for income tax purposes. |
| unlimited liability | A situation in which the owner of the business is responsible to pay the business debts out of personal assets. |
| limited life | A situation in which a business's life span or existence is determined by the owner's life span or the owner's decision to terminate the business. |
| partnership | A business owned by two or more persons. |
| partnership agreement | A written document that states how the partnership will be organized. |
| general partner | A business partner who has decision-making authority, takes an active role in the operation of the business, and has unlimited liability. |
| limited partner | A business partner who does not take an active role in decision making or in running the business. |
| cooperative | An organization that is owned and operated by its members. |
| corporation | A business organization that operates as a legal entity that is separate from its owners and is treated by law as if it were an individual person. |
| articles of incorporation | The application to operate as a corporation. |
| corporate bylaws | The rules by which a corporation will operate. |
| corporate charter | A license to operate a corporation. |
| board of directors | A group of individuals who are responsible for overseeing the general affairs of the corporation. |
| limited liability company (LLC) | A business that operates and pays taxes as a partnership but has limited liability for the owners. |
| franchise | A contractual agreement to sell a company's products or services in a designated geographic area. |
