(See related pages)
Below are the key terms featured in this chapter. Clicking on a term will reveal its definition. The textbook's full glossary is also available for online searching.
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| Acquisition | One company’s purchase of the property and obligations of another company (See page(s) 168) |
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| Articles of incorporation | A legal authorization from the federal or provincial/territorial government for a company to use the corporate format (See page(s) 166) |
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| Co-operative | An organization that is owned by members and customers, who pay an annual membership fee and share in any profits (See page(s) 176) |
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| Conglomerate merger | The joining of firms in completely unrelated industries (See page(s) 168) |
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| Corporate governance | The process and policies that determine how an organization interacts with its stakeholders, both internal and external (See page(s) 165) |
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| Corporation | A legal entity with authority to act and have liability separate from its owners (See page(s) 154) |
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| Franchise | The right to use a specific business’s name and sell its goods or services in a given territory (See page(s) 171) |
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| Franchise agreement | An arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell its products in a given territory (See page(s) 171) |
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| Franchisee | A person who buys a franchise (See page(s) 171) |
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| Franchising | A method of distributing a good or service, or both, to achieve a maximum market impact with a minimum investment (See page(s) 170) |
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| Franchisor | A company that develops a product concept and sells others the rights to make and sell the products (See page(s) 171) |
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| General partner | An owner (partner) who has unlimited liability and is active in managing the firm (See page(s) 157) |
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| General partnership | A partnership in which all owners share in operating the business and in assuming liability for the business’s debts (See page(s) 157) |
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| Horizontal merger | The joining of two firms in the same industry (See page(s) 168) |
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| Leveraged buyout (LBO) | An attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing (See page(s) 170) |
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| Liability | For a business, it includes the responsibility to pay all normal debts and to pay because of a court order or law, for performance under a contract, or payment of damages to a person or property in an accident (See page(s) 155) |
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| Limited liability | The responsibility of a business’s owners for losses only up to the amount they invest; limited partners and shareholders have limited liability (See page(s) 157) |
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| Limited partner | An owner who invests money in the business but does not have any management responsibility or liability for losses beyond the investment (See page(s) 157) |
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| Limited partnership | A partnership with one or more general partners and one or more limited partners (See page(s) 157) |
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| Merger | The result of two firms forming one company (See page(s) 168) |
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| Partnership | A legal form of business with two or more owners (See page(s) 154) |
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| Partnership agreement | Legal document that specifies the rights and responsibilities of each partner (See page(s) 160) |
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| Private corporation | Corporation that is not allowed to issue stock to the public, so its shares are not listed on stock exchanges; it is limited to 50 or fewer shareholders (See page(s) 161) |
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| Public corporation | Corporation that has the right to issue shares to the public, so its shares may be listed on a stock exchange (See page(s) 161) |
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| Sole proprietorship | A business that is owned, and usually managed, by one person. (See page(s) 154) |
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| Unlimited liability | The responsibility of business owners for all of the debts of the business (See page(s) 156) |
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| Vertical merger | The joining of two companies involved in different stages of related businesses (See page(s) 168) |