Vocab 8 1. Business organization- the ownership structure of a company or firm. 2. Sole partnership- a business that one person owns. 3. Business license- written permission given by the local government that allows a business to open. 4. Zoning laws- law that does not allow people to operate a business in certain areas. 5. Unlimited personal liability- when the owner of a business is responsible for paying all the money the business owns. 6. Liable- having legal responsibility. 7. Limited capital- the limit on the amount of money to grow the business. 8. Fringe benefits- anything extra given to workers in addition to their wages, such as paid vacations, retirement plans, and medical insurance. 9. Partnership- a business that two or more people own.. 10. General partnership- a partnership in which partners share equally in both responsibility and liability. 11. Limited partnership- a partnership in which only one partner is required to have both responsibility and liability. 12. Limited liability partnership- a partnership in which all partners are limited partners. 13. Articles of partnership- a partnership agreement; lists each partner’s rights and responsibilities and how the partners will share profits or losses. 14. Asset- the money and valuables belonging to an individual or business. 15. Business franchise- a business that pays fees to a parent company in return for the right to sell a product or service. 16. Royalty- share of earning given as payment to the owner of a patent or copyright. 17. Corporation- a business that can be made up of many owners; the law allows it to act like a single person. 18. Charter- an official document issued by state governments that gives the right to create a corporation 19. Share- a unit of stock in a company 20. Stock- a certificate that signifies ownership in a corporation. 21. Closely held corporation- a corporation that gives stock to only a few people, often members of the same family. 22. Publicly held corporation- a corporation that sells stock on the open market. 23. Limited liability- when investors can lose only the money they have invested. 24. Bond- a type of loan that investors buys from a company or from the government; the seller promises to pay back the investor’s money plus a profit later. 25. Certificate of incorporation- a license to form a corporation issued by a state governments 26. Dividend- the investors share of company’s profit. 27. Capital gain- financial gain 28. Limited liability corp.- a type of business with limited liability for the owners; it does not pay corporate income tax. 29. Horizontal merger- when a business buys another business that provides the same goods and services. 30. Vertical merger- the combination of businesses