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Definition
| The most common form of corporation. It protects the entrepreneur from being personally sued for the actions and debts of the corporation. |
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Definition
| A business that is chartered by a state and legally operates apart from its owners. |
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Definition
| A legal agreement that gives an individual the right to market a company’s products or services in a particular area. |
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Definition
| A person who purchases a franchise agreement. |
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Term
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Definition
| The person or company who sells a franchise. |
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Definition
| A partnership in which all partners have unlimited personal liability and take full responsibility for the management of the business. |
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Definition
| The fee the franchise owner pays in return for the right to run the business. |
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Definition
| A partnership in which two companies join to complete a specific project. The partnership ends after a specified period of time. |
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Term
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Definition
| The owners of a business are liable only up to the amount of their investment in the business. |
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Term
| Limited Liability Company (LLC) |
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Definition
| A new form of business ownership that provides tax advantages and limited liability. |
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Term
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Definition
| A partnership in which the partners’ liability is limited to their investment. |
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Term
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Definition
| Legal entities that make money for reasons other than the owner’s profit. |
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Definition
| A form of business ownership in which two or more people share the assets, liabilities, and profits. |
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Definition
| Goods from which everyone receives benefits. |
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Definition
| A business owned and operated by one person. |
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Term
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Definition
| A partnership in which two businesses work together for mutual benefit. |
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Term
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Definition
| A corporation that is taxed as a sole proprietorship or partnership. |
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Term
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Definition
| The debts of the business must be paid from the personal assets of the owner. |
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