| A | B |
|---|
| Business Entity | The accounting assumption that a business exists independently of its owner’s personal holdings. The accounting records and reports are maintained separately and contain financial information related only to the business. |
| Capital | Money supplied by investors, banks, or owners of a business |
| Charter | The legal permission, granted by a state, that gives a corporation certain rights and privileges and spells out the rules under which the corporation is to operate. |
| Corporation | A business organization recognized by law to have a life of its own. |
| Entrepreneur | A person who transforms ideas for products or services into real-world businesses. |
| For-Profit business | A business that operates to earn a profit for its owners. |
| Free Enterprise System | A system in which individuals are free to produce the goods and services they choose. |
| Going Concern | The accounting assumption that a business is expected to survive and operate indefinitely. |
| Loss | The result when a business spends more money than it earns. |
| Manufacturing Business | A business that buys raw materials, transforms them into finished products by using labor and machinery, and sells the finished products to individuals or other businesses. |
| Merchandising Business | A business that buys finished goods and resells them to individuals or other businesses. |
| Non-Profit business | An organization that operated for purposes other than making a profit. |
| Partnership | A business owned by two or more persons, called partners, who agree to operate the business as co-owners. |
| Profit | The amount of money earned above the amount of expense incurred to keep the business operating. |
| Service Business | A business that provides a needed service for a fee. |
| Sole Proprietorship | A business owned by one person. |
