Entrepreneurship ch 7

Sole Proprietorship

A business owned by one person

Corporation

A business owned by stockholders who share in its profits but are not personally responsible for its debts

Franchise

A legal agreement that gives an individual the right to market a company's products or services in a particular area.

Stockholders

owners of a corporation

initial franchise fee

the amount the local franchise owner pays in return for the right to run the franchise

Startup cost

the cost associated with beginning a business

intellectual property

the original, creative work of an artist or inventor and may include such things as songs, novels, artistic designs, and inventions

Royalty fees

weekly or monthly payments made by the owner of the franchise to the seller of the franchise

Franchise Disclosure Document

a regulatory document describing a franchise opportunity that prospective franchisees must receive before they sign a contract

Trademark

a symbol, word, or words legally registered or established by use as representing a company or product.

Provisional Patent Application

allows an inventor one year to investigate the feasibility, marketability, and potential license interest of an invention before deciding to file a formal patent application

partnership agreement

an agreement that clearly states what each partner of a business has agreed to

share of stock

each unit of ownership in a corporation

Dividends

earnings distributed to stockholders

Advertising fee

fees paid to support television, magazine, or other advertising of the franchise as a whole

Copyright

form of intellectual property law that protects original works of authorship, including literary, dramatic, musical, and artistic works

board of directors

group of people who meet several times a year to make important decisions affecting the company

Patent pending

Giving the inventor a head start on other inventors who may file for the same invention

franchise handbook

List 1700 franchises by category

Merger

Occurs when a company buys a competing firm

4 ways to have own business

Start one Buy a business Buy a franchise Family business

Patent

The grant of property right to an inventor to exclude others from making, using, or selling their invention.

Franchiser

The person or company that offers a franchise for purchase.

Franchisee

The person who purchases a franchise agreement

Contract

a binding agreement between two or more persons that is enforceable by law

Partnership

a business owned by two or more people