Buys goods, often from wholesalers, and

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

Buys goods in large quantities,

typically from manufacturers, and resells them in smaller batches to

retailers.

Pro-

vides services to customers

for a fee.

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.

The legal obligation

of a business owner to use personal money and possessions to

pay the debts of the business.

A business owner can be legally

forced to use personal money and possessions to pay the debts

of the business.

A business owner

cannot be legally forced to use personal money and possessions

to pay business debt.

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.

A legally defined type of business organization in which

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

all partners have unlimited liability

Is structured so that at least one partner

(the general partner) has limited liability for the debts of the business.

Is a legal document that

clearly defines how the work, responsibilities,

rewards, and liabilities of a partnership will be

shared by the partners.

A legally defined type of business ownership in which the business itself is

considered a type of “person” (often referred to

as an “entity”) under the law, and limited liability

is granted to the business owner(s).

The owners of a corporation are

called:

is a unit of ownership in a corporation.

A portion of the corporation’s profit.

Taxed

as an entity by the federal government.

To set up a corporation in accordance with the laws of the particular

state where the business is located.

Differs from a C corporation in how

it is taxed. It is not taxed as an entity, rather its income or loss is

applied to each shareholder and appears on their tax returns.

Differs from a C corporation in how

it is taxed. It is not taxed as an entity, rather its income or loss is

applied to each shareholder and appears on their tax returns.

Is a legally defined type of business

ownership similar to a C corporation, but with simpler operating

requirements and tax procedures and greater liability protection for

the business owners (who are called members).

A legally defined type of business owner-

ship in which the company operates not to provide profit for its share-

holders but to serve the good of society.

A business owned, controlled, and operated for the

mutual benefit of its members—people who use its services, buy its

goods, or are employed by it.