| A | B |
|---|
| 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 a “C” corporation |
| Pyramid scheme | An illegal form of multi-level marketing in which emphasis is placed on collecting initial fees from as many people as possible |
| 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%. |
| Shareholders | Owners of stock; also known as stockholders |
| Sole proprietorship | A business owned by one person who receives all the profits from the business and takes all the risks |
| Stockholders | Owners of stock; also known as shareholders |
| Subchapter “S” corporation | A type of corporation that is limited to 100 or fewer shareholders, has limited shareholder liability, and requires little financial reporting; taxed as a partnership; also known as an “S” corporation |
| Unlimited liability | Requirement that business owners be responsible for paying business debt; personal assets can be used to pay the debt |
