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.