Category 1
Business model where a company provides goods or services for free but later charges for extra features
Freemium
Business model where the owner of a company grants another business owner the right to use the owner company’s name
Franchise
An organization that generates income for its owners
For Profit
Company that is created to benefit a public interest
Not for Profit
A company’s plan for making a profit
Business Model
Employees of a business sell a product directly to a consumer
direct sales model
A form of business owned by two or more individuals who share management and profits
partnership
A business owned and operated by a single individual
sole proprietorship
A share in ownership and a claim to a portion of a corporation’s profits
stock
A legally binding contract that establishes a partnership
partnership agreement
The way a company’s mission relates to its structure
organizational design
A document that outlines the procedures for how an LLC will function
operating agreement
Type of ownership that joins elements of a corporation and a partnership
LLC
Involves at least one general partner who assumes operations control and unlimited liability as well as one or more limited partners
limited partnership
A portion of a corporation’s income received by stockholders
dividend
Gives the owners full control over management, operations, and business decisions regarding the company
general partnership
A group of individuals who represent stockholders and make high‐level policy and management decisions for a corporation
board of directors
A rule that explains how business will be conducted by a corporation
corporate bylaws
The collection of small investments from a large number of individuals to finance a business
crowdfunding
A corporation that requires its owners to file their profits and losses on their personal tax returns
S-Corp