Unit 3 Test Review Flashcards Preview

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Flashcards in Unit 3 Test Review Deck (21)
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0
Q

Sole proprietorship

A

A business owned and managed by a single individual.
•Most popular in the United States.
•Advantages of sole proprietorship:
•Ease of Start-Up
•Most states have minimum requirements that include authorization, site permit, and name.

1
Q

A business organization

A

Is an establishment formed to carry on commercial enterprise.
•Sole proprietorships are the most common forms of business organizations.

2
Q

Business license

A

authorization to start a business issued by the local government.

3
Q

Zoning laws

A

Sole proprietorships may also be subject to local

4
Q

Liability

A

Is the legally bound obligation to pay debts.

•Even if the business fails, the owner is still responsible for the debt the business acquired.

5
Q

Fringe benefits

A

are payments to employees other than wages or salaries.

6
Q

A partnership

A

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

7
Q

General Partnership

A

partners share equally in both responsibility and liability.

8
Q

Limited Partnership

A

only one partner has unlimited personal liability for the firm’s actions.

9
Q

Limited Liability Partnership (LLP)

A

all partners are limited partners.

10
Q

Professional organizations

A

work to improve the image, working conditions, and skill levels of people in particular occupations.

11
Q

Trade associations

A

are nonprofits that promote the interests of a particular industries.

12
Q

Business associations

A

promote the collective business interests of a city, state, or other geographical area, or of a group of similar businesses.

13
Q

Producer cooperatives

A

agricultural marketing cooperative that helps members sell their products.

14
Q

Service cooperatives

A

they provide a service rather than a good.

15
Q

Consumer cooperatives

A

retail outlet owned and operated by consumers.

16
Q

Cooperative

A

is a business organization owned and operated by a group of individuals for their shared benefit.

17
Q

Business franchise

A

is a semi-independent business that pays fees to a parent company.

18
Q

Multinational corporations

A

are the world’s largest corporations that produce and sell their goods and services throughout the world.

19
Q

Conglomerates

A

are firms that have more than three businesses that make unrelated products.

20
Q

Vertical mergers

A

join two or more firms involved in different stages of producing the same good or service.