If a company franchises its business, it means that it sells franchises to other companies, allowing them to sell its goods or services that have instant name recognition. The franchising company also provide training and support.


A contract between two or more persons to unite their property, labor or skill in pursuit of some joint or lawful business and to share the profits in a certain specified proportion.

General partnership is one in which all partners are jointly and severally liable for the debts of the partnership, regardless of the amount of an individual partner’s actual investment in the partnership.

Limited partnership is one in which limited partners are liable for the debts of the partnership only to extent of their investments in the partnership, while general partners are jointly and severally liable for the full amount of such debts.


Inventory is a detailed listing of the stock-in-trade of a business. Inventory types typically can be grouped under three classifications: raw material, work in progress, and finished goods.

1. Raw materials: Goods that are used in the production as a source material.
2. Work in progress: All the materials that are being processed.
3. Finished goods: Completed goods that are ready for sale.


In business, "goodwill" refers to the reputation of a business. In selling a business, it represents non-physical assets such as brand recognition, customer loyalty, patents, copyrights, and trademarks.

Goodwill is considered an intangible asset in an acquisition because it is not a physical asset like shares, property, or equipment.
Improved by Simon Mueller