| A | B |
|---|
| sole proprietorship | a business owned and run by one person |
| proprietorship | business owned by one person |
| unlimited liability | owner is personally responsible for all losses and debts of his business |
| inventory | a stock of finished goods and parts in reserve |
| limited life | the company ceases to exist when the owner dies, quits, or sells the business |
| partnership | a business that is jointly owned by 2 or more people |
| general partnership | partners are responsible for management and money obligations of the business |
| limited partnership | this person is not active in the daily running of the business and has limited responsibilty for debt |
| corporation | it is a legal entity with a charter |
| charter | a government document that gives permission to create a corporation |
| stock | ownership certificates in the firm |
| shareholders | hold shares or part of the corporation (investors) |
| stockholders | bought shares/stock in the company |
| dividend | a check that gives stockholders a portion of the profits of the company |
| common stock | owner of this stock gets one vote for every share |
| preferred stock | owner has non voting shares of the corporation |
| bond | a written promise to repay amount borrowed at a later date |
| prinicipal | amount borrowed |
| interest | price paid for use of money |
| double taxation | stockholders are taxed on corporation profits/also as investors when they report their dividends as personal income |
