CH.5.1 (Business) Vocab

Franchising

A contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor.

Stockholders

A group of people that make up a corporation by sharing ownership in a certain company

Business Incubator

An organization that provides temporary low-cost, shared facilities to small start-up ventures.

Corporation

Business that stands as a legal entity with assets and liabilities separate from those of its owner

Acquisition

Procedure in which one firm purchases the property and assumes the obligations of another

Sole Proprietorship

a business owned and managed by a single individual

Small Business

a business that is independently owned and operated, is not dominant in its field of operation and meets certain standards of size in terms of employees or annual receipts

Partnership

a contract between two or more persons who agree to pool talent and money and share profits or losses

Board of Directors

a group of persons chosen to govern the affairs of a corporation or other large institution

Business Plan

a written description of the business idea and how it will be carried out, including all major business activities.

Small Business Administration

an independent agency of the United States government that protects the interests of small businesses and ensures that they receive a fair share of government contracts

Merger

the combination of two or more commercial companies