Business owned and operated by one individual with less than 50 employees; most common form of business organization in the united states, includes restaurants, hair salons, flower shops, etc.

Association of two or more persons who carry on as co-owners of a business for profit.

Form of business taxed as though it were a partnership with restrictions on the number of shareholders.

Provides limited liability and taxation like a partnership but places fewer restrictions on members.

Shares of a corporation that may be bought or sold. Can also be gifted or inherited.

Profits of a corporation that are distributed in the form of cash payments to stockholders.

Where the owners have a claim to profits before other stockholders do.

Where the owners have voting rights in the corporation, yet do not receive preferential treatment regarding dividends.

Legal document that the state issues to a company based on information the company provides in the articles of incorporation.

Selling a corporation's stock on public markets for the first time. becoming a public corporation.

Owned and operated by the government.

Focus on providing a service rather than earning a profit but are not owned by a government entity.

Group of individuals, elected by the stockholders to oversee the general operation of the corporation, who set the corporation's long-range objectives.

Composed of individuals or small businesses that have banded together to reap the benefits of belonging to a larger organization.

Occurs when two companies (usually corporations) combine to form a new company.

When one company purchases another, generally by buying most of its stock.

When firms that make and sell similar products to the same customers merge.

When companies operating at different but related levels of an industry merge.

A purchase in which a group of investors borrows money from banks and other institutions to acquire a company (or a division of one), using the assets of the purchased company to guarantee repayment of the loan.

Individual who creates and manages a business to achieve desired objectives.

Any independently owned and operated business that is not dominant in its competitive area and does not employ more than 500 people.

Lack of funds needed to operate a business optimally.

A precise statement of the rationale for a business and a step-by-step explanation of how it will achieve its goals.

Person or organization that agrees to provide some funds for a new business in exchange for an ownership interest or stock.

Individual in a large firm who fosters innovation within the organization.

A license to sell another's products or to use another's name in business, or both.

The company that sells a franchise.

The purchaser of a franchise.