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30 Cards in this Set

  • Front
  • Back
articles of incorporation
A set of documents filed with a government body for the purpose of legally documenting the creation of a corporation. Also referred to as the "corporate charter."
business-format franchise
Under a business format franchise the franchisor grants the franchisee a licence to operate the franchise as an ongoing business enterprise.
The remaining assets of a business after all liabilities have been deducted; net worth.
A document issued by a sovereign, legislature, or other authority, creating a public or private corporation, such as a city, college, or bank, and defining its privileges and purposes.
close corporation
A corporation in which the shares of stock are held by relatively few persons and are not publicly traded.
When goods are delivered to another company with the understanding that payment for the goods is only made once the goods are sold.
The merger of two or more commercial interests or corporations.
A legal entity that is separate and distinct from its owners. Corporations enjoy most of the rights and responsibilities that an individual possesses that is, a corporation has the right to enter into contracts, loan and borrow money, sue and be sued, hire employees, own assets and pay taxes.
The act or process of expanding
An agreement between a firm and another party in which the firm provides the other party with the right to use the firm's name and to sell or rent its products.
An individual or a company that has the right to sell or rent another firm's products and to use its name.
One that grants a franchise.
The act of granting a franchise
general partnership
A partnership in which each of the partners is liable for all of the firm's debts, and the actions of one partner are binding on each of the other partners.
The financial obligations entered in the balance sheet of a business enterprise.
limited liability
The liability of a firm's owners for no more capital than they have invested in the business.
limited liability company (LLC)
A type of company, authorized only in certain states, whose owners and managers receive the limited liability and (usually) tax benefits of an S Corporation without having to conform to the S corporation restrictions.
limited partnership
A partnership in which some of the partners have a limited liability to the firm's creditors.
The act or an instance of merging; union
open corporation
A corporation in which the shares of stock are open to the public for trade.
ordinary partnership
A partner in an ordinary partnership can be made liable without limit for the debts and obligations of the firm.
The state of being a partner.
partnership agreement
any written or oral agreement of the partners as to the affairs of a limited partnership and the conduct of its business.
product trade-name franchise
When a franchisor owns the right to the name or trademark and sells that right to a franchisee.
An advantageous gain or return; benefit.
sole proprietorship
A business organization that is unincorporated and has only one owner.
The number of shares that each stockholder possesses.
One who owns a share or shares of stock in a company.
subchapter "S" corporation
A form of corporation, allowed by the IRS for most companies with 75 or fewer shareholders, which enables the company to enjoy the benefits of incorporation but be taxed as if it were a partnership.
unlimited liability
A type of investment in which a partner or investor can lose an unlimited amount of money.