sole proprietorship  A business owned and managed by one person.

liability  The legal responsibility to repay debts and to pay for damages resulting from a lawsuit.

partnership  A business owned by two or more co-owners who share profits from the business and are legally responsible for the business squo;s debts.

corporation   A business owned by shareholders who have limited liability for the firm squo;s debts. Because it is considered a legal entity, a corporation can conduct business affairs in its name.

multinational corporation  A corporation that does business in more than one country.

business franchise  An arrangement in which a parent company, or franchiser, distributes its products or services through independently owned outlets. The outlet owners, or franchisees, pay for the exclusive right to use the parent company squo;s trade name and sell its products or provide its services.

cooperative  A business organization that is jointly owned and operated by a group of individuals for their mutual benefit.

nonprofit organization  An organization that functions much like a business but does not operate to make a profit.