| A | B |
|---|
| Franchise | A written contract granting permission to operate a business to sell products and services in a prescribed way |
| Articles of Incorporation | A written legal document that identifies ownership and operating procedures and conditions for the business - filed with the state |
| Service Business | Businesses that complete activities that are consumed by customers rather than offering products for sale |
| Limited Liability Partnership | This form of partnership identifies some investors who cannot lose more than the amount of their investment but cannot participate in the day-to-day management |
| Corporation | A separate legal entity, formed by documents filed with the state, which is owned by one or more shareholders and managed by a board of directors |
| Partnership | A business owned and controlled by two or more people who have entered into a written agreement |
| Corporate By-Laws | These serve as the operating procedures for a corporation - internal document |
| Limited Liability Company | This combines the best features of a partnership and corporation by providing liability protection for its owners and is simpler to setup and operate |
| Partnership Agreement | A written agreement among all owners that specifies the rules and procedures that guide ownership and operations |
| Cooperative | A company owned by members, serves their needs, and is managed in their interest |
| Sole Proprietorship | A business owned and controlled by just one person |
| Nonprofit Corporation | A group of people who join to do some activity that benefits the public |
| Franchiser | The company that owns the product or service and grants the rights to another |
| S-Corporation | Many small businesses favor this corporate structure that offers limited liability of a corporation |
| Franchisee | The person purchasing the rights to run a business |
| Board of Directors | The people who make the major policy and financial decisions for a corporation |
| Stock | A unit of ownership in a corporation |
| Dividend | Money paid regularly by a company to its shareholders out of its profits |
| Joint Venture | Unique business organized by two or more other businesses to operate for a limited time |
| Royalty Fee | An ongoing fee that the franchisee pays to the franchisor. This fee is usually paid monthly or quarterly, and is typically calculated as a percentage of gross sales. |
| Initial franchise fee | One-time fee paid for the right to run the franchise |
| Start-up Costs | Costs associated with starting a business, such as equipment |
