Entrepreneurship Vocabulary Chapter 3

Converts materials

into goods suitable for use and then sells those goods to others.

• wholesaling business

• retailing business

• service business

• manufacturing business

Buys goods, often from wholesalers, and

resells them directly to consumers, who are the end buyers.

• wholesaling business

• retailing business

• service business

• manufacturing business

Buys goods in large quantities,

typically from manufacturers, and resells them in smaller batches to

retailers.

• wholesaling business

• retailing business

• service business

• manufacturing business

Pro-

vides services to customers

for a fee.

• wholesaling business

• retailing business

• service business

• manufacturing business

Is an arrangement in which an established company

sells the right for others to use the company’s name and operating plan to

sell products or services.

• franchise

• liability

• taxes

• sole proprietorship

The legal obligation

of a business owner to use personal money and possessions to

pay the debts of the business.

• liability

• unlimited liability

• limited liability

• sole proprietorship

A business owner can be legally

forced to use personal money and possessions to pay the debts

of the business.

• liability

• unlimited liability

• limited liability

• sole proprietorship

A business owner

cannot be legally forced to use personal money and possessions

to pay business debt.

• liability

• unlimited liability

• limited liability

• sole proprietorship

A legally defined type

of business ownership in which a single individual owns the business,

collects all profit from it, and has unlimited liability for its debt.

• liability

• unlimited liability

• limited liability

• sole proprietorship

A legally defined type of business organization in which

at least two individuals share the management, profit, and liability.

• limited partnership

• partnership

• general partnership

• sole proprietorship