E OBJ 1.05 Vocab

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” (U.S. Supreme Court)

• A contractual agreement between a parent company and a franchisee to distribute goods or services

• A form of business ownership in which members of a corporation experience limited liability; there is limited taxation on company income and limited life for the business entity

• A legal business structure that primarily operates for the purpose of serving others, not to make a profit; income is used to cover operational expenses; can be exempt from paying some or all taxes

Franchise

• A contractual agreement between a parent company and a franchisee to distribute goods or services

• Two individual businesses that combine to form one organization

• A legal business structure that primarily operates for the purpose of serving others, not to make a profit; income is used to cover operational expenses; can be exempt from paying some or all taxes

• A business owned by one person who receives all the profits from the business and takes all the risks

Limited liability company (LLC)

• A form of business ownership in which members of a corporation experience limited liability; there is limited taxation on company income and limited life for the business entity

• A legal business structure that primarily operates for the purpose of serving others, not to make a profit; income is used to cover operational expenses; can be exempt from paying some or all taxes

• 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

• A business owned by one person who receives all the profits from the business and takes all the risks

Merger

• Two individual businesses that combine to form one organization

• A legal business structure that primarily operates for the purpose of serving others, not to make a profit; income is used to cover operational expenses; can be exempt from paying some or all taxes

• A form of business ownership in which the business is owned by two or more persons

• A business owned by one person who receives all the profits from the business and takes all the risks

Non Profit Corporation

• A legal business structure that primarily operates for the purpose of serving others, not to make a profit; income is used to cover operational expenses; can be exempt from paying some or all taxes

• A form of business ownership in which the business is owned by two or more persons

• A form of business growth in which a company extends its operations or facilities using new capital or reinvested funds

• 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” (U.S. Supreme Court)

Partnership

• A form of business ownership in which the business is owned by two or more persons

• A contractual agreement between a parent company and a franchisee to distribute goods or services

• A form of business growth in which a corporation acquires many smaller companies

• A business owned by one person who receives all the profits from the business and takes all the risks

Sole proprietorship

• A business owned by one person who receives all the profits from the business and takes all the risks

• A form of business ownership in which the business is owned by two or more persons

• 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” (U.S. Supreme Court)

• A legal business structure that primarily operates for the purpose of serving others, not to make a profit; income is used to cover operational expenses; can be exempt from paying some or all taxes