Chapter 8 Vocab

Question 1

An establishment formed to carry on commercial enterprise

Answer 1

Business organization

Question 2

A business owned and managed by a single individual

Answer 2

Sole proprietorship

Question 3

Authorization to start a business issued by the local government

Answer 3

Business license

Question 4

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

Answer 4

Zoning law

Question 5

The legally bound obligation to pay debts

Answer 5

Liability

Question 6

Payment other than wages or salaries

Answer 6

Fringe benefit

Question 7

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

Answer 7

Partnership

Question 8

Partnership in which partners share equally in both responsibility and liability

Answer 8

General partnership

Question 9

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

Answer 9

Limited partnership

Question 10

Partnership in which all partners are limited partners

Answer 10

Limited liability partnership (LLP)

Question 11

A partnership agreement

Answer 11

Articles of partnership

Question 12

Act ordering common ownership interests, profit and loss sharing, and shared management responsibilities in a partnership

Answer 12

Uniform partnership act (UPA)

Question 13

Money and other valuables belonging to an individual or business

Answer 13

Assists

Question 14

A legal entity owned by individual stockholders

Answer 14

Corporation

Question 15

A certificate of ownership in a corporation

Answer 15

Stock

Question 16

Corporation that issues stock to only a few people, often family members

Answer 16

Closely held corporation

Question 17

Corporation that sells stock on the open market

Answer 17

Publicly held corporation

Question 18

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

Answer 18

Bond

Question 19

License to form a corporation issued by state government

Answer 19

Certificate of incorporation

Question 20

The portion of corporate profits paid out to stockholders

Answer 20

Dividend

Question 21

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

Answer 21

Horizontal merger

Question 22

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

Answer 22

Vertical merger

Question 23

Business combination merging more than three businesses that make unrelated products

Answer 23

Conglomerate

Question 24

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

Answer 24

Multinational corporation (MNC)

Question 25

A semi independent business that pays fees to a parent company in return for the exclusive right to sell a certain product or service in a given area

Answer 25

Business franchise

Question 26

Share of earnings given as payment

Answer 26

Royalty

Question 27

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

Answer 27

Cooperative

Question 28

Retail outlet owned and operated by consumers

Answer 28

Consumer cooperative

Question 29

Cooperative that provides a service, rather than a good

Answer 29

Service cooperative

Question 30

Agricultural marketing cooperative that helps members sell their products

Answer 30

Producer cooperative

Question 31

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

Answer 31

Nonprofit organization

Question 32

Nonprofit organization that works to improve the image, working conditions, and skill levels of people in particular occupations

Answer 32

Professional organization

Question 33

Nonprofit organization that promotes collective business interests for a city, state, or other geographical area, or for a group of similar businesses

Answer 33

Business association

Question 34

Nonprofit organization that promotes the interests of a particular industry

Answer 34

Trade association