Intro. to Business - Chapter 6 Business Ownership and Operations

Sole Proprietorship

A business owned by one person.

Unlimited liability

Full responsibility for your company's debt.

Partnership

A business owned by two or more persons who share the risks and rewards.

Corporation

A business owned by many people but treated by law as one person.

Stock

Shares of Ownership.

Limited Liability

Stockholders lose only what they invested.

Franchise

A contractual agreement to sell a company's product or services in a designated geographic area.

Nonprofit Organization

A type of business that focuses on providing a service rather than making a profit.

Cooperative

An organization owned and operated by its members for the purpose of saving money on the purchase of certain goods and services.

Producer

A business that gathers raw products in their natural state.

Processor

Businesses that changes raw goods into more finished product.

Manufacturers

Businesses that make finished products out of processed goods.

Intermediary

A business that moves goods from one business to another.

Wholesaler

A business that buys goods in large amounts and resells them to other businesses in smaller lots.

Retailer

A business that sells goods or services directly to the public.

Manufacturing

combining raw materials and processed goods into finished products.

Limited Liability Company (LLC)

Provides liability protections for owners. Simpler than a corporation. Similar to a partnership document agreement.

Service Business

A business that provides a service, such as hair styling.