Chapter 8 Flashcards Preview

ECONOMICS Mid-Term '15 > Chapter 8 > Flashcards

Flashcards in Chapter 8 Deck (24):
0

An establishment formed to carry on commercial enterprise

Business Organization

1

A business owned and managed by a single individual

Sole Proprietorship

2

Authorization to start a business issued by the local government

Business License

3

Law in a city or town that designates separate areas for residency and for business

Zoning Law

4

The legally bound obligation to pay debts

Liability

5

Payment other than wages or salaries

Fringe Benefit

6

A business organization owned by two or more persons who agree on a specific division of responsibilities and profits

Partnership

7

Partnership in which partners share equally in both responsibility and liability

General Partnership

8

Partnership in which only one partner is required to be a general partner

Limited Partnership

9

Partnership in which all partners are limited partners

Limited Liability Partnership

10

Money and other valuables belonging to an individual or business

Assets

11

A legal entity owned by individual stockholders

Corporation

12

A certificate of ownership in a corporation

Stock

13

A formal contract to repay borrowed money with interest at fixed intervals

Bond

14

License to form a corporation issued by state government

Certificate of Incorporation

15

The portion of corporate profits paid out to stockholders

Dividend

16

The combination of two or more firms competing in the same market with the same good or service

Horizontal Merger

17

The combination of two or more firms involved in different stages of producing the same good or service

Vertical Merger

18

Business combination merging more than three businesses that make unrelated products

Conglomerate

19

Large corporation that produces and sells its goods and services throughout the world

Multinational Corporation

20

Share of earnings given as payment

Royalty

21

A business organization owned and operated by a group of individuals for their mutual benefit

Cooperative

22

Institution that functions much like a business, but does not operate for the purpose of generating profits

Nonprofit Organization

23

Nonprofit organization that promotes the interests of a particular industry

Trade Association