glossary 67

Americans with Disabilities Act (ADA)

Federal statute prohibiting discrimination against the disabled in employment, transportation, and public accommodations.

Employee

A person hired to perform work directed and controlled by the employer.

Employer

The party who hires employees to do certain work.

Human relations

Motivating people in organizations to develop teamwork, fulfilling needs and achieving organizational objectives.

Human resource management (personnel management)

Process of acquiring, training, motivating, and appraising employees for maximum efficiency and satisfaction.

Advertising

The art of making the public aware of a business's services or commodities.

Agent

Party appointed by a principal to enter into contracts on their behalf.

Board of directors

Body of persons elected by stockholders to define and establish corporate policy.

Business plan

Summary of how an owner intends to organize and implement a business venture.

Close (closely held) corporation

Corporation with shares and control held by a limited, non-publicly traded group.

Corporation

A business entity created by statute and owned by stockholders.

Domestic corporation

A business organization operating in the state that granted its charter.

Foreign corporation

A corporation operating in a state other than where it is chartered.

General partner

An individual actively, openly engaged in a partnership and publicly known as such.

Goals

Broad, motivational statements of what an organization wants to achieve, without timeframes.

Limited liability company (LLC)

A business organization featuring liability protection and pass-through taxation.

Limited partner

Partner whose liability for debts is limited to their invested capital.

Marketing management

Planning and executing the development, pricing, promotion, and distribution of goods/services.

Objectives

Specific, measurable statements of ends to be achieved within a specific timeframe.

Partnership

The voluntary association of two or more people as co-owners of a business.

Private corporation

A corporation formed to carry out non-governmental functions.

Public corporation

A corporation formed to carry out government functions.

Secret partner

A partner who is active in the business but unknown to the public.

Shareholders (stockholders)

Those holding title to corporate stock, representing ownership of the corporation.

Silent partner

Partner with capital invested who takes no active part in management.

Sole proprietorship

A business owned by one person who is personally liable to creditors.

Subchapter S corporation

Corporation where shareholders are taxed as a partnership, avoiding double taxation.

Third party merchandise sales

Funeral goods sold to consumers by sellers other than a funeral establishment.