When you’re navigating the business world, understanding key business terms is like having a cheat code to success. Whether you’re starting your first venture or fine-tuning your corporate knowledge, these terms can save you from blank stares in meetings.

1. Startup

A startup is a company in its early stages of development, typically driven by innovation and a high-growth mindset. Think Airbnb, Uber, or even your friend’s ambitious coffee subscription service. The idea is to scale quickly and disrupt the market.

2. Sole Proprietorship

This is the simplest type of business: one person owns it all. You’re the boss, but you’re also liable for everything. High risk, high reward.

3. Partnership

Two heads (or more) are better than one. A partnership is when two or more people team up to run a business, sharing profits and responsibilities.

4. LLC (Limited Liability Company)

An LLC gives you the best of both worlds—flexibility like a sole proprietorship but with limited liability protection. Translation: if things go south, your personal assets are safer.

5. Corporation

This is the big leagues. A corporation is a legal entity separate from its owners. It’s great for raising capital but comes with more rules and paperwork.

6. Conglomerate

Ever heard of Disney? It’s a conglomerate—a giant corporation owning multiple businesses across industries.

7. Holding Company

This type of company doesn’t sell products or services. Instead, it owns shares in other companies to control them. Think of it as the puppet master of the business world.

8. Shell Company

Not all shell companies are shady, but they’ve gotten a bad rap for being used in tax evasion and money laundering. Essentially, it’s a company that exists only on paper.

9. Cartel

A cartel is a group of independent businesses working together to control prices and limit competition.