Business Terminology

Front

Partnership

Back

A business organization in which two or more individuals manage and operate the business. Both partners are equally personally responsible for the business's debts.

Front

Corporation

Back

A legal entity that is separate and distinct from its owners, offering limited liability to its shareholders but having its own legal rights and obligations.

Front

Business Plan

Back

A formal written document that contains the objectives of a business, the methods to achieve those objectives, and the timeframe for achievement.

Front

Creditor

Back

An entity (person or institution) that extends credit by allowing another entity to borrow money that must be repaid in the future.

Front

Proprietor

Back

An individual who owns a business establishment or a sole proprietorship.

Front

Limited Partnership

Back

A partnership in which some or all partners have limited liabilities, meaning they are not responsible for the business debts beyond their initial investment.

Front

Charter

Back

A legal document that provides for the creation of a corporate entity, describing its structure and governance.

Front

Shareholders

Back

Individuals or entities that own shares in a corporation, making them partial owners of the company.

Front

Board of Directors

Back

A group of individuals elected to represent shareholders and oversee the activities and direction of a company.

Front

Merger

Back

A strategic decision where two companies agree to combine their operations into a single entity, often to achieve synergies and improve their competitive position.