Marketing Essentials Chapter 33

Entrepreneurship
The process of starting and operating your own business
Entrepreneurs
people who create, launch, organize, and manage a new business and take the risk of business ownership
Franchise
a legal agreement to sell a parent company’s product or services in a designated geographic area
Sole proprietorhsip
a business that is owned and operated by one person
Unlimited Liability
the owner’s financial liability is not limited to investments in the business
Partnership
a legal agreement between two or more people to be jointly responsible for the success or failure of a business
General Partnership
each partner shares in the profits and losses
Limited Partnership
each limited partner is liable for any debts only up to the amount of his or her investment in the company
Limited Liability
the personal assets of the owners cannot be taken if a company does not meet its financial obligations or if it gets into legal trouble
Corporation
a legal entity created by either a state or a federal statute, authorizing individuals to operate an enterprise
Stockholders
the owners of a corporation and have limited liability
Foreign Corporation
a corporation that is incorporated under the laws of a state that differs from one in which it does business
Limited Liability Corportaion (LLC)
a relatively new form of business organization that is a hybrid of a partnership and a corporation
Doing Business As (DBA)
the registration by which the country government officially recognizes that a new proprietorship or partnership exists
Articles of Incorporation
identify the name and address of a new corporation, its purpose, and the names of the initial directors