| A | B |
|---|
| Asset | anything of value that a business or individual owns |
| Capital | assets of a business |
| Commission | a percentage of the total sale amount paid to the individual or business that makes the sale |
| Corporation | a form of business ownership that is owned by stockholders who have purchased units or shares of the company; an "artificial being, invisible, intangible, and existing only in contemplation of the law" |
| Dividend | a sum of money paid to an investor or stockholder as earnings on an investment |
| Franchise | a contractual agreement between a parent company and a franchisee to distribute goods or services |
| Limited liability | Restricted chance of loss; a condition in which business owners risk only the amount of their investment |
| Limited partnership | A type of partnership agreement in which a partner has limited liability; the liability is limited to the amount of the investment |
| Nonprofit corporation | A legal business structure that primarily operates for the purpose to serve others - not to make a profit; income is used to cover operational expenses; can be exempt from paying some or all taxes |
| Partnership | A form of business ownership in which the business is owned by two or more persons |
| Private corporation | A type of corporation owned by a few people that does not offer its shares for sale to the general public; also known as closely held, or close, corporation |
| Public corporation | A type of corporation that usually sells millions of shares of stock to many stockholders; must make its financial information available to the general public; also known as an open corporation |
| Stockholders | Owners of stock; also known as shareholders |
| Royalty | Fees paid to a parent company that are often based on a percentage of the franchise's profits; a percentage of actual sales that a licensee pays to a licensor; usually anywhere from 5 to 15 percent |
| Sole proprietorship | A business owned by one person who receives all the profits from the business and takes all the risks |
