Term
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Definition
| One company's purchase of the property and obligations of another company. |
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Term
| Conglomerate Merger (this is one of the three types of corporate mergers) |
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Definition
| Unites firms in completely unrelated industries. Purpose to diversify business operations and investments. Example: Soft drink buys snack foods company |
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Term
| Conventional (C) Corporation |
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Definition
| State-chartered legal entity with authority to act and have liability separate from its owners (the stockholders). |
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Term
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Definition
| That which is owned and controlled by the people who use it - producers, consumers or workers with similar needs who pool their resources for mutual gain (example: in rural parts of the country, electrical power is sold through this). |
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Term
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Definition
| A legal entity with authority to act and have liability separate from its owners. |
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Term
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Definition
| An arrangement whereby someone with a good idea for a business sells the rights to use the business name and to sell a product or service to others in a given territory. |
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Term
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Definition
| A person who buys a franchise. |
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Term
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Definition
| A company that develops a product concept and sells others the rights to make and sell the products. |
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Term
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Definition
| A partnership in which all the owners share in operating the business and in assuming the liability for the business's debts. |
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Term
| Horizontal Merger (this is one of the three types of corporate mergers) |
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Definition
| Merger of companies in the same industry. Example: Soft drink buys mineral water company |
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Term
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Definition
| An attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing. |
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Term
| Limited Liability Corporation (LLC) |
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Definition
| The owner of a business is responsible for losses only up to the amount they invested (in England and Canada, the letters Ltd. represent this also). |
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Term
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Definition
| A partnership with one or more general partners and one or more limited partners. |
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Term
| Master Limited Partnership (MLP) |
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Definition
| A partnership that looks much like a corporation (in that it acts like a corporation and is traded on a stock exchange) but is taxed like a partnership and thus avoids the corporate income tax. |
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Term
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Definition
| The result of two firms forming one company. |
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Term
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Definition
| When two or more people legally agree to become co-owners of a business. |
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Term
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Definition
| A unique government creation that looks like a corporation but is taxed like a sole proprietorship and partnerships. |
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Term
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Definition
| A business that is owned, and usually managed, by one person. |
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Term
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Definition
| The risk of personal losses, or any debts or damages incurred by the business are your debts and you must pay them, even if this means selling your home, your car, or whatever else you own. |
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Term
| Vertical Merger (this is one of the three types of corporate mergers) |
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Definition
| Merger of companies in different stages in related industries. Example: Soft drink buys artificial sweetener company |
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