Business Ownership

Cooperation

1) Farmers join together to transport, store, and sell their crops 2) The amount of control a person has in the business may depend upon the value of the products and services bought from the business during the year

Initial Public Offering

I.P.O.

partnership

a business organization with 2 or more owners who share responsibility 1) If one of the owners make a large, unwise purchase and the business cannot pay the bill, another owner might have to do so 2) Owners agree on how they will divide profits and share losses 3) An owner may be added to help make business decisions

sole proprietorship

a business owned by 1 person 1) owner is his or her boss 2) if a profit is made, the owner gets it all

corporation

a business that is legally regarded as a separate entity 1) The business can sell stock to raise more money 2) Owners allow a board of directors to make decisions about the business

partnership agreement

a contract between 2 or more people setting up a business

franchise

a grant to sell a company's product or service within a specific area

stock price appreciation

buying stocks to make money

multinational corporation

corporation with offices and plants in more than one country

board of directors

individuals chosen to make a major decisions for a company

charter

legal form of giving a corporation permission to operate

stockholders/shareholders

owners of a corporation

discount

reduction in price

unlimited liability

responsibilities for debts, even those that exceed the assets of a business

by laws

rules of operation for a corporation

stock

shares in the ownership of a corporation

dividends

where the company votes to share part of their market with their shareholders