Entrepreneurship Ch. 9 Study Guide

board of advisors

A group formed at the discretion of the founders (regardless of the legal form chosen) and composed of individuals outside the business who advise the founders

ADA

Americans with Disabilities Act - specifies protections in business for those with disabilities.

Subchapter C Corporation

An organizational form that treats the firm as a unique entity responsible for its own taxes. There are no limitations to shareholder participation and the "owners" are protected beyond their equity investment.

Subchapter S Corporation

An organizational form that treats the firm as an entity separate from the individuals. This allows the owners to treat the income as they would if the firm were a sole proprietorship or a partnership. It has limitations in the number and the type of shareholders.

patent

Claim of intellectual property that covers a specific innovation

trademark

Claim of intellectual property that is associated with specific business. This may be the name of the firm, a symbol representing the firm, or the names of its products.

general partner

In an LLP, the individual considered the manager of hte firm, who, as such, has unlimited liability for any debts or judgments against the firm.

copyright

The legal means to protect intellectual property. It grants ownership on creative materials generated, such as books, magazines, advertising copy, music, artwork, or virtually any other creative product, whether published or unpublished.

draw

a distribution of funds from the business. it is usually in the form of a cash dispersion in advance of salary, bonus, expected year-end distribution, and the like.

LLC

a limited liability corporation

LLP

a limited liability partnership

partnership

a type of business formed between individuals directly. It includes both general and limited varieties

contract

an agreement between two parties to perform certain activities for some consideration

sole proprietorship

the simplest form of business organization, characterized by the fact that the person who owns the business and the business itself are treated as the same entity