International Business Chapter 5
stock certificate
a document that represents ownership in a corporation
dividends
a share of corporate earnings paid to stockholders
management contract
a situation in which a company sells only its management skills in another country
sole proprietorship
a business owned by one person
partnership
a business that is owned by two or more people, but is not incorporated
Cooperative
a business owned by its members and operated for their benefit
Corporation
a business that operates as a legal entity separate from any of the owners
Direct exporting
a company that actively seeks and conducts exporting
joint venture
an agreement between two or more companies to share a business project
municipal corporation
an incorporated town or city organized to provide services for citizens rather than to make a profit
wholly-owned subsidiary
an independent company owned by a parent company
multinational company
an organization that conducts business in several countries
nonprofit corporations
groups created to provide a service and not concerned with making a profit
licensing
selling the right to use some intangible property for a fee or royalty
net income
the difference between money taken in and expenses
Charter
the document granted by the state or federal government that allows a company to organize as a corporation
stockholders
the owners of a corporation
foreign direct investment
the purchase of land or other resources in a foreign country
franchise
the right to use a company name or business process in a specific way
indirect exporting
the seeling of a company's products in a foreign market without any special activity for that purpose
limited liability
the situation in which a business owner is only responsible for the debts of the business up to the amount invested
unlimited liability
the situation in which a business owner's personal assets can be used to pay any debts of the business that are unpaid