Chep 2 Terms

unlimited liability

Responsibility for claims against the business that goes beyond the amount invested in the business and extends to one's personal assets.

partnership agreement

The legal document that establishes a partnership and each partner's responsibilities.

general partnership

The most common form of partnership, in which the partners share in responsibility, decision making, and profits. However, the partners have unlimited liability for the debts of the business.

limited partnership

limited partnership A partnership in which the liability of each partner is limited to the amount of his or her investment.

limited liability

limited liability A restriction on the extent to which the shareholders (owners) of a corporation are personally responsible for its debts, limiting their liability to the amount they originally invested.

multinational

A business operating in or involving several nations. Also known as a transnational.

shares

a unit of ownership of a company.

shareholders

A person who owns shares in a corporation; also called a stockholder.

board of directors

A group of individuals who run 2 corporation or co-operative and make decisions on behalf of the shareholders.

dividend

dividend The part of a corporation's profit after taxes that each shareholders receives.

private corporation

A corporation owned by a small number of shareholders.

public corporation

A corporation with many shareholders, whose shares can be bought and sold on a stock exchange.

Crown corporation

A business owned and operated by the provincial or federal government.

municipal corporations

A formal name for a city or a town.

franchiser

The parent company that grants the franchise and provides goods and/or services to the Franchises.

franchisee

A person who runs a franchise operation and is under contract, or licensing agreement, with the franchiser.

Small Office, Home Office

SOHO Short for “small office, home office,” SOHO re home-based businesses.

e-commerce

A method of direct distribution that uses the Internet to sell products directly to consumers.

website

A place, or site, on the Internet where o business can be established and accessed by consumers, A website consists of one or more web pages designed to provide information about the business and display goods o services offered for sale.

domain name

The name given to a website; a web address

online

Linked electronically, especially over the Internet. To “go online” s to establish oneself on the Internet,

web pages

A portion of the information posted on a website,

website hits

A visit to a website by someone using the Internet. The number of hits indicates the popularity or usefulness of the site.

gross domestic product

The total value of all goods and services produced in a country during a | specific period of time (including items produced by foreign-owned companies).

debt financing

Borrowing money to finance operations of the business.

equity financing

Raising money using the owner’s resources or money from investors.

forecasting

predicting future conditions

revenue

The money a business receives for the products and/or services it sells or from its investments.

joint ventures

A business project that matches the skills of two individuals or businesses for mutual benefit.

strategic alliances

an arrangement between two companies to undertake a mutually beneficial project while each retains its independence

merger

A process whereby one company combines with or takes over the ownership of one or more other companies.

offshoring

The relocation of some of a company’s operations to another country.

multinational corporation

A business operating in or involving several nations. Also known as transnational.