Econ 8

Question 1

an unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm.

Answer 1

Partnership

Question 2

a form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, and sue and be sued.

Answer 2

Corporation

Question 3

formal contract to repay borrowed money and interest on the borrowed money at regular future intervals

Answer 3

Bond

Question 4

measure of business profits determined by subtracting all expenses, including taxes, from revenues

Answer 4

Net Income

Question 5

combination of firms involved in different steps of manufacturing, marketing, or sales.

Answer 5

Vertical Merger

Question 6

economic institution that operates like a business but does not seek financial gain; schools, churches, and community-service organizations are examples.

Answer 6

Nonprofit Organization

Question 7

nonprofit service cooperative that accepts deposits, makes loans, and provides other financial services.

Answer 7

Credit Union

Question 8

a requirement that an owner is personally and fully responsible for all losses and debts of a business; applies to proprietorships and general partnerships.

Answer 8

Unlimited Liability:

Question 9

Is an unincorporated business owned and run by a single person
who has rights to all profits and unlimited liability for all debts of the firm; most common form of business organization in the United States.

Answer 9

Sole proprietorship

Question 10

is an organization that works for its members’ interests concerning pay, working hours, health coverage, fringe benefits, and other job-related matters.

Answer 10

Labor union