Chapter 6 FlashCards
Terms
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- What is a sole proprietorship?
- A business owned by ONE person.
- What is a partnership?
- A business owned and managed by a small group, often not more than two or three people, who become partners.
- What is a corporation?
- A business owned by a number of people and operated under written permission from the state in which it is located.
- What is a certificate of incorporation?
- The written permission needed for a corporation to own a business.
- What are shareholders?
- Stockholders, or people who own shares of stock.
- What are the five things needed in managing a successful business?
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Planning
Organizing
Staffing
Leading
Controlling - What is a board of directors?
- A group with the responsibility to guide the operations of a corporation.
- What is a dividend?
- The part of the profits that each shareholder receives.
- What is a franchise?
- A written contract granting permission to sell someone else's product or service in a prescribed manner.
- What is a franchisee?
- A person or a group that receive the franchise from a parent company to sell its products or services.
- What is a franchisor?
- The parent company granting the franchise.
- What is a consumers' cooperative?
- An organization of consumers who buy goods and services more cheaply together than each person could individually.
- What is a producers' cooperative?
- Usually a farmers' organization that markets products such as fruit, vegetables, milk, and grains.
- What is a municipal corporation?
- An incorporated town that has its own officials, its own schools, its own police and fire department, and provides street repairs, street lighting, and other services for its citizens.