| A | B |
|---|
| Sole Proprietorship | A business owned by one person. |
| Employer Identification Number (EIN) | A # used by the gov't for income tax purposes. |
| Unlimited Liability | The responsibility of paying debts from your own personal assets if your business owes money. |
| Limited Life (of a business) | When the owner leaves or dies, the business ceases to exist. |
| Partnership | A business owned by 2 or more persons. |
| Partnership Agreement | A written document stating how the partnership is organized. |
| General Partner | Has decision-making authority, and takes an active role in the business. |
| Agency Power (mutual agency) | Any partner has the right to sign contracts that are legally binding on the partnership. |
| Limited Partners | Rarely take an active role in decision making or in running the business. |
| Corporation | A business organization that operates as a legal entity separate from its owners. |
| Articles of Incorporation | The application to operate as a corporation. |
| Corporate Charter | A license to operate a corporation. |
| Corporate Bylaws | Rules by which a corporation will operate. |
| Going Public | When a corporation decides to sell its stock on the open market. |
| Board of Directors | A group of individuals responsible for overseeing the general affairs of the corporation. |
| Limited Liability Corporation (LLC) | A business that operates and is taxed as a partnership, but has limited liability for its owners. |
| Franchise | A contractual agreement to sell a company's products or services in a designated geographic area. |
