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
