Chapter 6: Business Ownership and Operations

Cooperative

An organization that is owned and operated by its members, groups of businesses

Acounting

Involves maintaining and checking records, handling bills, and preparing financial reports for a business

Corporation

A company that is registered by a state and operates apart from its owners

Finance

The business or art of money management, analyzing financial statements to make future decisions

Franchise

A contractual agreement to use the name and sell the products or services of a company in a designated geographic area

Intermediary

A business that moves goods from one business to another, it buys goods, stores them, and then resells them

Limited Liability

Holds a firm’s owners responsible for no more than the capital that they have invested in it

Management

The process of achieving company goals by planning, organizing, leading, controlling, and evaluating the effective use of resources

Manufacturer

A business that makes finished products out of processed or raw goods

Marketing

The process of planning, pricing, promoting, selling, and distributing ideas, goods, and services

Nonprofit Organization

A type of organization that focuses on providing a service, but not to make a profit

Partnership

A business owned by two or more people who share its risks and rewards

Processor

Changes raw materials into more finished products

Procurement

The buying and reselling of goods that have already been produced

Producer

A business that gathers raw goods

Production

The process of creating, expanding, manufacturing, or improving goods and services

Retailer

Purchasing goods from a wholesaler and selling them to consumers, the final buyers of the goods

Sole Proprietorship

A business owned by one person

Unlimited Liability

The owner is responsible for the company’s debt

Wholesaler

Distribute goods