Business - Chapter 5-2

Board of Directors

the people who make the major policy and financial decisions for the business.

mission statement

short, specific written statement of the reason a business exists and what is wants to achieve.

Franchise

Written contract granting permission to operate a business to sell products and services in a set way. There is a parent company.

Articles of Incorporation

Written legal document that defines ownership and operating procedures and conditions of the business.

Service business

a business that carries out activities that are consumed by its customers.

organization chart

a diagram that shows the structure of an organization, classifications of work and jobs, and the relationships among those classifications.

Partnership

A business owned and controlled by two or more people who have entered into an agreement.

Proprietorship

A business owned and run by just one person.

Corporation

A separate legal entity that is owned by one or more shareholders and managed by a board of directors.

Partnership Agreement

A written agreement among all owners which detailed the rules and procedures that guide ownership and operations.

Franchisee

The company or person purchasing the right to run the business.

Franchiser

The company that owns the product or service and grants the rights to another business or person.