| A | B |
|---|
| free enterprise system | people can produce the goods and services they choose |
| profit | the amount of money earned over and above the amount spent |
| loss | when businesses spend more money than they earn |
| capital | money that investors, banks, or business owners supply |
| service business | provides a needed service for a fee |
| merchandising business | buys finished products and resells them |
| manufacturing business | manufactures products and sells them |
| sole proprietorship | a business owned by one person |
| partnership | a business owned by two or more persons |
| corporation | a business recognized by law to have a life of its own |
| charter | legal permission that gives a corporation rights and privileges |
| General Partnership | all partnership are liable for the business’s losses |
| unlimited liability | the owners personal assets can be used to pay the business debt. |
| stock certificate | document that represents ownership in a corporation |
| stockholders | owners of a corporation |
| dividends | profits of a corporation |
| Municipal corporations | incorporated town or city organized to provide services for citizens rather than to make a profit |
| Nonprofit corporations | created to provide a service and are not concerned with make a profit but to breakeven |
| Cooperatives | businesses owned by their members and operate for their benefit |
| Franchise | the right to use a company name or business process for fee |
