Entrepreneurship Chapter 14

C corporation

a separate legal and taxable entity created through the state government and owned by an unlimited number of shareholders

copyright

a form of protection provided to the creators of original works in the areas of literature, music, drama, choreography, art, motion pictures, sound recordings, and architecture

founders’ agreement

a clear agreement between founders on a number of key issues that their business might face

general partnership

a business owned by two or more people who have made a decision to co-manage and share in the profits and losses

intellectual property

intangible personal property created by human intelligence, such as ideas inventions, slogans, logos, and processes

limited liability company

a business structure that combines the taxation advantages of a partnership with the limited liability benefits of a corporation without being subject to the eligibility requirements of an s-corp

nondisclosure agreement

a legal contract that outlines confidential information shared by two or more parties

not-for-profit

a tax status granted to companies performing functions deemed by Congress to be socially desirable that exempts them from income tax and, in some cases, allows them to receive tax-deductible donations

patent

a grant of exclusive property rights on inventions through the US and other governments

S corporation

a type of corporation that is eligible for and elects special taxation status

sole proprietorship

a business owned by one person who has full exposure to its liabilities

trade secret

confidential information that provides companies with a competitive edge and is not in the public domain, such as formulas, patterns, compilations, programs, devices, methods, techniques, or processes

trademark

any word, name, symbol, or device used in business to identify and promote a product. Its counterpart for service industries is the service mark

vesting

the concept of imposing equity forfeitures on cofounders over a certain period of time on a piecemeal basis should they not stay with the company