BUSINESS CH. 6-10

Sole proprietorship

A form of business ownership with a single owner who actively manages the company.

Partnership

A voluntary agreement under which two or more people act as co-owners of a business for profit.

Corporation

A form of business ownership in which the business is considered a legal entity that is separate and distinct from its owners.

Limited liability

When owners are not personally liable for claims against their firm; personal assets are protected.

General partnership

A partnership where all partners can manage the business and have unlimited liability for claims.

Franchise

A licensing arrangement where a franchisor allows franchisees to use its name, trademark, and other property.

Angel investors

Individuals who invest in startup companies with high growth potential in exchange for shared ownership.

Market niche

A small segment of the market with fewer competitors than the market as a whole.

C corporation

The most common legal business form that offers limited liability to all its owners, known as stockholders.

Board of directors

Individuals elected by stockholders to represent their interests and oversee corporate management.