| Term | Definition |
|---|
| enterprise | a business undertaking that involves risks |
| industry | a group of one or more firms that produce identical or similar products |
| sole proprietor | business owned by one person |
| partnership | business organization owned by two or more people who share ownership and control over business |
| corporation | business organization managed on behalf of its owners who provide the funds |
| stock exchange | a market in which the public buys and sells shares of stock |
| franchise | license that entitles its holder to operate his or her individually owned business |
| charter | a document that states the nature of the business, the owners of the stock, and the types of stocks sold |
| limited liability | shareholders can be held responsible only for debt up to their investment; what they paid for their share of the stock; goes for a corporation business |
| ease of transfer | stockholders can enter or leave a corporation at will by buying or selling share of stock |
| unlimited life | when a stockholder dies, the corporation does not dissolve |
| ability to raise funds | corps can raise money by selling stock |
| unlimited liability | all debts and obligations are the responsibility of the sole proprietor and partnerships |
| cooperatives | associations of individuals or companies that perform functions for the members |
Combine with other sets
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