| A | B |
|---|
| Alien corporation | “chartered in one nation |
| Articles of incorporation | “filed with state department to request a charter (license) to incorporate“ |
| Board of directors | “elected by stockholders to manage the corporation at upper levels; not day to day operations but major decisions |
| Bylaws | “rules by which a corporation runs business” |
| C-corporation | “The traditional and most common form of corporation. It protects the entrepreneur from being personally sued for the actions and debts of the corporation” |
| Common stock | “type of ownership issued by all corporations |
| Cooperative | “organizations owned & operated by its members for the mutual benefit of group; saving money on operations |
| Corporation | “A business that is chartered by a state and legally operates apart from its owners” |
| Corporate bonds | “loans to a corporation by individuals who buy the corporation’s securities” |
| Corporate charter | “license issued by individual state to grant privilege of doing business” |
| Distributor | “marketing firms that perform activities involved in moving goods from producers or manufacturers to consumers or storage” |
| Dividend | “Distribution by the corporation of profit to stockholders” |
| Domestic corporation | “chartered in a specific state and doing business within that state” |
| Dormant partner | “Partner who does not participate in operation of business & is not known to public” |
| Double taxation | “when a corporation is taxed at corporate level & stockholders are taxed on dividends” |
| Foreign corporation | “chartered in one state but doing business in another state” |
| Franchise | “A legal agreement that gives an individual the right to market a company’s products or services in a particular area; may be business format or product format” |
| Franchisee | “Person who purchases a franchise agreement” |
| Franchisor | “Person or company who sells a franchise” |
| General partner | “Partner who has unlimited liability |
| General partnership | “Partnership in which all partners have unlimited personal liability and take full responsibility for the management of the business” |
| Initial franchise fee | “The fee the franchise owner pays in return for the right to run the business” |
| Joint venture | “A partnership in which two companies join to complete a specific project; partnership ends after a specified period of time or completion of project” |
| Limited liability | “Owners of a business are liable only up to the amount of investment in the business” |
| Limited Liability Company (LLC) | “A new form of business ownership that provides tax advantages and limited liability” |
| Limited Liability Partnership (LLP) | “Partnership in which a partners’ liability is limited to their investment. Must have at least one general partner to have full liability” |
| Limited Partner | “a partner who is not active in the business |
| Nonprofit corporation | “Legal entities that make money for reasons other than owner’s profit; exempt from taxation |
| Partnership | “Form of business ownership in which two or more people share the assets |
| Partnership agreement | “Contract between partners that describes the role of each partner |
| Partnership by agreement | “Partnership formed after two or more parties agree to conditions in their contract” |
| Partnership by proof of existence | “partnership formed by the way two or more people conduct their business” |
| Preferred stock | “type of ownership with first rights to assets if the corporation dissolves; no voting” |
| Private corporation | “established by individuals as “for profit business” or charitable” |
| Public corporation | “established for governmental purposes” |
| Retailer | “business that moves or sells products to end user or consumer” |
| Secret partner | “a partner who participates in operating decisions but is not known to the public” |
| Service firms | “business that provide services rather than goods to consumers” |
| Silent partner | “a partner who does not participate |
| Sole proprietorship | “A business owned and operated by one person” |
| Strategic alliance | “Partners who make long term commitment to work together for mutual benefit” |
| Stockholder | “owns a % of corporation based on shares of stock purchased” |
| Stock | “a share of ownership in a corporation that can be purchased for a stated price” |
| Subchapter S corporation | “A corporation that treats owners as individuals for tax purposes” |
| Termination | “Ending of a business” |
| Unlimited liability | “Debts/obligations of business may be paid from the personal assets of the owner” |
| Wholesaler | “business that moves or sells products to other businesses” |
