Chapter 8 Flashcards Preview

Economics > Chapter 8 > Flashcards

Flashcards in Chapter 8 Deck (14):
1

sole proprietorships

business owned and managed by a single person

2

limited life

business closes if owner dies, retires, or leaves business

3

unlimited liability

owner is personally responsible for all debts

4

partnership

business co-owned by two or more people

5

general partnerships

partners share responsibilities, profits, debts and losses equally

6

limited partnerships

at least one partner is limited and is liable only for the funds he or she invested

7

limited liability partnerships (LLP)

all partners are limited and not responsible for liabilities of other partners

8

limited liability

owner's liability for debts and losses is limited

9

unlimited life

business continues to exist even if owner changes

10

dividend

part of a corporation's profit paid out to stockholders

11

horizontal merger

joins companies with same or similar product

12

vertical merger

joins different steps of productions and marketing

13

conglomerate

combines companies with unrelated products

14

multinational corporation

has branches in several countries