| A | B |
|---|
| Entrepreneur | Person who assumes the risk of starting, owning, & operating a business for the purpose of making a profit |
| Intrapreneur | Employee who is given funds & freedom to create a special unit or department within a company to develop a new product, process, or service. |
| Business plan | Written document that describes the nature of the business, its goals & objectives, and how they will be achieved |
| Proprietorship | Business owned & managed by 1 person |
| Proprietor | Owner-manager of a proprietorship |
| Creditor | Person/ business to which money is owed |
| Balance sheet | Financial statement indicating the business’s assets (own), liabilities (owe), and owner’s equity (capital) |
| Net worth, equity, capital | = Assets – Liabilities |
| Schedule C | Tax form for proprietorships |
| Partnership | Business owned by 2+ people |
| Partnership agreement | Written agreement between 2+ people identifying how partners will add capital, labor, or other assets & divide any profits |
| Unlimited financial liability | Each partner is responsibility for all debts |
| Limited partnership | Partnership with at least 1 general partner who has unlimited liability and at least 1 limited partner whose liability is limited to his/her investment |
| Good faith | Always do what’s best for business |
| Corporation | Business owned by a group of people & authorized by the state in which it is locate to act as though it were a single person, separate from its owners |
| Charter ICertifidcate of Incorporaton) | Official document through which a state grants the power to operate as a corp |
| Stockholders | Owners of corp |
| Shares | Ownership divided into equal parts |
| Dividends | Profits distributed to stockholder on per-hare basis |
| Net proceeds | Cash received from sale of all assets less payment of all debts |
| Board of Directors | Ruling body of corp |
| Officers | Top executives who are hired to manage the business |
| Close corporation | Does not offer its shares of stock for public sale |
| Open corporation | Offers its shares of stock for public sale |
| Prospectus | Formal summary of chief features of business & its stock offering |
| Proxy | Written authorization for someone to vote on behalf of the person signing proxy |
| Agency dilemma | Occurs when agent (someone who works for another) pursues their own interest over their employers |
| LLP (limited liability partnership) | Partnership in which each partner’s liability is limited to his/her investment in partnership |
| Joint venture | Agreement among 2+ businesses to work together to provide a g/s |
| Cooperative | Business owned & operated by its user-members for the purpose of supplying themselves w/ g/s |
| LLC (limited liability company) | Special type of corporation hat I taxes as if it were a sole proprietorship or partnership |
| Subchapter S | Popular LLC = offers liability protection but allows taxation like partnership (no double taxation) |
| Nonprofit corporation | Organization that does not pay taxes & does not exist to make a profit |
| Quasi-public corporation | Business important to society but lacks the profit potential to attract private investors and is often operated by local, state, or federal government |
| Subsidy | Government financial support |
