Vocab 1
The buying and selling of products or services in order to make a profit
Business
The right or license granted by a company to an individual or group to market its products or services in a specific territory
Franchise
A written legal document that identifies ownership and operating procedures and conditions for the business
Articles of Incorporation
Reduction in values over time
Depreciation
what percent does sole proprietorship make up of business
72%
A business owned and operated by one person.
Sole Proprietorship
A short, specific written statement of the reason a business exists and what it wants to accomplish
Mission Statement
The money you earn
Revenue
Increase in value over time
Appreciation
what percent of US business revenue is sole proprietorship
5%
A business owned by one or more people who have entered into a written agreement.
Partnership
Businesses that complete activities that are consumed by a customers rather than offering products for sale
Service Business
The money you spend to be in business
Expenses
Ownership in a company
Equity
what percent of total US business revenue does corporation make?
89%
A business owned by one or more shareholders and managed by a board or directors
Corporation
Guidelines used in making consistent decisions
Policies
Total revenue minus total expenses
Net Profits or Net Income
Something you own that has value
Asset
what percent of US business revenue is partnership
6%
A special form of business organization that combines advantages of a corporation and a partnership.
Limited Liability Company
Descriptions of the way to work is to be done
Procedures
The cost of goods sold; what you pay for what you sell
COGS
Something that you owe for
Liability
what percent of business do corporations make up?
20%