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Chapter 5: Legal Forms of Business

Horizontales
Merger that combines unrelated firms, usually with the goal of diversification, spurring sales growth, or spending a cash surplus in order to avoid a takeover attempt
Contractual business arrangement between a manufacturer or other supplier, and a dealer such as a restaurant operator or retailer
Agreement in which one firm purchases another.
Business ownership in which there is no legal distinction between the sole proprietor’s status as an individual and his or her status as a business owner
Firm operated from the residence of the business owner
Governing body of a corporation
Partnership between companies formed for a specific undertaking
Money invested in a business by another business firm or group of individuals in exchange for an ownership share
Owners of a corporation due to their purchase of stock in the corporation
Independent business with fewer than 500 employees, not dominant in its market
Merger that joins firms in the same industry for the purpose of diversification, increasing customer bases, cutting costs, or expanding product lines
Verticales
Type of for-profit corporate entity that includes a positive impact on society and the environment as part of its defined goals
Association of two or more persons who operate a business as co-owners by voluntary legal agreement
Firm whose products are sold to customers by the franchisee
Local programs designed to provide low-cost shared business facilities to small start-up ventures
Agreement in which two or more firms combine to form one company
Written document that provides an orderly statement of a company’s goals, methods, and standards
Individual or business firm purchasing a franchise