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entrepreneur
a person who organizes, manages, and assumes the risks of a business in order to gain a profit
inventory
supply of items or materials used in a business
receipts
income received from the sale of goods and/or services
sole proprietorship
a business owned and operated by one person
unlimited liability
complete legal responsibility for all debts of doing business
assets
property owned by a person or company, regarded as having value and available to meet debts, commitments
partnership
two or more individuals own and operate a business
limited partnership
not all of the partners are equal
-only contribute funds or property
-have no say in management
-have no liability for losses
limited liability company
type of business structure that protects partners from losing their personal wealth
joint venture
a temporary partnership created to accomplish a specific task for a short period of time
corporation
an organization owned by many people but treated by law as a “legal person”
stock
a share of ownership or ownership rights to future profits and assets of the corporation
articles of incorporation
lists basic info of the corporation
corporate charter
license to operate granted by the state where it is established
preferred stock
-no voting rights
-guaranteed a dividend each year: portion of profits paid to shareholders
dividend
a sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits (or reserves)
common stock
-voting rights
-no guarantee of a dividend: whatever is left after preferred stockholders are paid
bylaws
set of rules for the corporation
limited liability
limited to stockholder’s investment
franchise
contract in which a corporation sells the rights to use its name and sell its products
Note
Flashcard