 | Term | Definition |
| |
acquisition |
one company's purchase of the property and obligations of another company |
| |
conglomerate merger |
joining of firms in completly unrelated industries |
| |
conventional corporation |
a state charted legal entity with authority to act and have liability separte from its owners |
| |
cooperative |
a business owned and controlled by the people who use it-- producers, consumers, or workeres with similar needs who pool their resources for mutual gain |
| |
corporation |
a legal entity with authority to act and have liabilty separate from its owners |
| |
franchise |
the right to use a specific business's name and sell its products or services in an area |
| |
franchise agreement |
an 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 the area |
| |
franchisee |
a person who buys a franchise |
| |
franchisor |
a company that developes a product concept and sells others the rights to make and sell the products |
| |
general partner |
an owner (partner) who has unlimited liability and is active in managing the firm |
| |
general partnership |
a partnership in which all owners share in operating the business and in assuming liability for the business's debts |
| |
horizontal merger |
the joining of firms in completly unrelated industries |
| |
leveraged buyout (LBO) |
an attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing |
| |
limited liability |
the responsibility of a business's owners for losses only up to the amount they invest; limited partnership and shareholders have limited liablity |
| |
limited liability company (LLC) |
company similar to an S corp. but without the special eligibility requirement |
| |
limited liability partnership (LLP) |
partnership that limits partners risk of losing their personal assets to only their acts and omissions of people under their supervision |
| |
limited partner |
an owner who invests money in the business but does not have any management responsibiility or liability for losses beyond the investment |
| |
limited partnership |
a partnership with one or more general partners and one or more limited partners |
| |
master limited partnership (MLP) |
a partnership that looks much like a corporation (traded on stock exchange) but is taxed like a partnership and thus avoids the corporate income tax |
| |
merger |
result of two firms forming one company |
| |
partnership |
a legal form of business with two or more owners |
| |
S corporation |
a unique government creation that looks like a corporation but is taxed like like sole proprietorships and partnerships |
| |
sole proprietorship |
a business that is owned, and usually managed by one person |
| |
unlimited liability |
the responsibility of business owners for all of the debts of the business |
| |
vertical merger |
the joining of two companies involved in different stages of related business |
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