| A | B |
|---|
| Sole proprietorship | A business owned by one person who receives all the profits from the business and takes all the risks |
| Partnership | A form of business ownership in which the business is owned by two or more persons |
| 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.” |
| Merger | Two individual businesses that combine to form one organization |
| Consolidation | A form of business growth in which a corporation acquires many smaller companies |
| Expansion | The stage of the business cycle characterized by increased spending and borrowing, increased demand for goods and services, increased employment rates, and decreased interest rates on loans |
| Franchise | A contractual agreement between a parent company and a franchisee to distribute goods or services. |
| Product trade-name franchise | A franchise arrangement based on an independent sales relationship between a franchisor and franchisee to stock and sell a specific line of goods; also known as dealership or exclusive distributorship |
| 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 |
