| A | B |
|---|
| Acquisition | The process of taking possession of something (e.g., acquiring another business by purchasing it |
| Annual report | A document outlining the financial status of a business |
| Asset(s) | Anything of value that a business or individual owns |
| Better Business Bureau | A consumer organization that monitors complaints against businesses |
| Board of directors | A group of people chosen to govern the activities of a corporation |
| Business-format franchise | A franchise arrangement in which the franchisee must operate under the trade name of the parent company that provides continuous assistance in setting up and operating the business |
| “C” corporation | A form of business ownership that is considered a separate legal entity from its owners; can be owned by unlimited stockholders and is susceptible to dual taxation; a type of public corporation |
| Capital | Assets of a business |
| Commission | A percentage of the total sale amount paid to the individual or business that makes the sale |
| Consolidation | A form of business growth in which a corporation acquires many smaller companies |
| 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” (U.S. Supreme Court) |
| Dealership | product trade-name franchise |
| Dividend | A sum of money paid to an investor or stockholder as earnings on an investment |
| Dual/Double taxation | The levying of two taxes on the same income (e.g., tax on a corporation’s income as well as dividends) |
| Exclusive distributorship | product trade-name franchise |
| Expansion | A form of business growth in which a company extends its operations or facilities using new capital or reinvested funds |
| Franchise | A contractual agreement between a parent company and a franchisee to distribute goods or services |
| Franchisee | One who buys the right to sell the goods or services of the parent company (franchisor) |
| Franchising | A method of distributing recognized goods and services through a legal agreement between two parties |
| Franchisor | A parent company and owner of the name and/or system that is being distributed through a contractual franchising arrangement |
