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