MCE-Business Types
franchisor
a company that develops a product concepts and sells others the rights to make and sell the products
vertical merger
joining of two companies involved in different stages of related business
horizontal merger
joining of two firms in the same industry
corporation
legal entity that is separate and distinct from its owners
partnership
legal form of business with two or more owners
double taxation
must file and pay taxes on corporate level and individual level
Franchise
the right to use a specific business's name and sell its products or services in a given territory
s-corporation
unique government creation that looks like a corporation but its taxed like sole proprietorships and partnerships
conglomerate merger
joining of firms in completely unrelated industries
small business administration
US government agency that advises and assists small businesses by providing management, financial advice, and loans
franchise agreement
arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell a product or service to others in a given territory
cooperative
business owned and controlled by the people who use it—producers, consumers, or workers with similar needs who pool their resources for mutual gain
crowdfunding
donation based or debt-investment
Flow-through entity
income is passed straight to its shareholders or owners
venture capitalists
individuals or companies that invest in new business in exchange for partial ownership of those businesses
Accquisition
one company's purchase of the property and obligations of another company
sole proprietorship
owned and managed by oneself
general partner
owner who has unlimited liability and is active in managing the firm
limited partner
owner who invests money in business but does not have any management responsibility or liability for losses beyond investment
consumer market
people with unsatisfied wants and needs who have both the resources and willingness to buy
franchisee
person who buys a franchise
angels
private individuals who invest their own money in potentially hot new companies before they go public
limited liability
responsibility of a business's owners for losses only up to the amount they invest
merger
result of two firms forming one company
c-corporation
state charted legal entity with authority to act and have liability separate from its owners