| A | B |
|---|
| Alien corporation | chartered in one nation, but doing business in another country |
| 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, usually own large % of corporation stock |
| 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 |
| cooperative | organizations owned & operated by its members for the mutual benefit of the group; saving money on operations, share financial risk, members control business |
| 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 | chargered in a specific state and doing business within the 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 |
| franchise | a legal agreement that gives an individual the right to market a company's products or services in a particular area |
| franchisor | person or company who sells a franchise |
| franchisee | person who purchases a franchise agreement |
| general partner | partnership in which all partners have unlimited personal liability and take full responsibility for the management of the business |
| 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 owners pays in return for the right to run the busines |
| 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 or a business are liable only up 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, but is known to the public |
| nonprofit corporation | legal entities that make money for reasons other than owner's profit; exempt from taxation, provides benefits to the public |
| partnership | form of business ownership in which two or more people share the assets, liabilities, and profits |
| partnership aggreement | contract between partners that describes the role of each partner, distribution of profits, rights of transference, etc. related to the partnership |
| 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 |
| 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 |
| silent partner | a partner who does not participate, but public is aware of his association in partnership; often provides capital funding & public relations |
| 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 |
| partnership by agreement | partnership formed after two or more parties agree to conditions in their contract |
| public corporation | established for governmental purposes |
