ENT Chapter 3
wholesaling business
buys goods in large quantities typically from manufacturers and resells them in smaller batches to retailers
partnership
type of business where two or more people share the business
franchise
an arrangement in which an established company sells the right for others to use the company's name and operating plan to sell products and services
manufactrer
converts materials into goods suitable for use and then sells those goods to others
manufacturing business
converts materials into goods suitable for use and then sells those goods to others
subchapter S corporation
not taxed as a whole but on its profit or loss to each stockholder and is put on their tax returns
service business
provides services to customers for a fee
reseller's permit
purchase goods tax free from wholesalers and collect sales tax from the end buyers
incorporate
set up a corporation in accordance with the laws of the particular state where the business is located
limited partnership
structured so that at least one partner has limited liability
liability
this is the legal obligation of a business owner to use personal money and possessions to pay the debits of the business
share of stock
unit of ownership in a corporation
retailing business
buy goods often from wholesalers and resells them directly to consumers who are the end buyers
general partnership
all partners have unlimited liability
north american industry classification system
assigns a numerical code to every industry in north america based on its primary business function
wholesaler
buys goods in large quantities typically from manufacturers and resells them in smaller batches to retailers
cooperative
business owned controlled and operated for the mutual benefit of its members
sole proprietorship
business ownership in which a single person owns the business
limited liability company
business ownership like a Corp but has simpler operating requirements and tax procedures and greater liability protection for the business owner
corporation
business ownership where a business its self is a parson under the law and limited liability is granted to business owners
trade business
business that is either a wholesale or retail business
retailer
buy goods often from wholesalers and resells them directly to consumers who are the end buyers
partnership agreement
document that says how work, responsibilities, rewards, and liabilities of a partnership will be shared by the partners
nonprofit corporation
does not provide profit to shareholders but to serve the good of society
limited liability
owner can't be forced to use personal money and possessions to pay business debt
unlimited liability
owner is forced to use personal money and possession to pay debts
shareholders
owners of a corporation
stockholders
owners of a corporation
dividend
portion of the corporations profit
C corporations
taxed as entities by the federal government
