Econ Midterm Chapter 8 Andrew Flashcards
Is a business owned and managed by a single person
Sole proprietorship
Is an established formed to carry on commercial enterprise
Business organization
And authorization from the local government
Business license
Separate areas or zones for residential use and for business
Zoning laws
The biggest disadvantage of a sole proprietorship
Liability
Payments to employees other than wages or salaries such as paid vacation, retirement pay, and health insurance
Fringe benefits
Is a business organization owned by two or more persons who agree on a specific division of responsibility and profit
Partnership
Most common type of partnership
General partnership
Only one partner is required
Limited partnership
Is a newer type of partnership recognized man states
Limited liability partnership
This is advised for small business. It spells out each partners rights and responsibility
Articles or partnership
If you don’t establish your own articles of partnership you will fall under theses rules
Uniform partnership act
Money and other valuables belonging to an individual or business
Assets
Is a legal entity, or being, owned by individual
Corporation
Stockholders own these
Stock
Companies that never really trade stock, only with family
Closely held corporations
Stockholders who buy and sell stock in the open market
Public held corporation
A formal contract to repay borrowed money with interest at fixed intervals
Bond
When stock holders receive income from the corporation
Dividends
Join two or more firms commuting in the same market
Vertical mergers
Have more than three businesses that make unrelated products
Conglomerates
Worlds largest corporation produce and sell their goods and services throughout the world
Multinational corporations
A semi independent business that payes fees
Business franchise
Earnings
Royalties
