Econ Chpt 8 Vocab

  1. Business Organization
    Establishment formed to carry on commercial Enterprise.
  2. Sole Proprietorship
    Business owned and managed by a single individual.
  3. Business License
    Authorization to start a business issued by the local government.
  4. Zoning Law
    Law in a city or town that designates separate areas for residency and for business.
  5. Liability
    The legally bound obligation to pay debts.
  6. Fringe Benefit
    Payment other than wages or salaries.
  7. Partnership
    Business organization owned by two or more persons who agree on a specific division of responsibilities and profits.
  8. General Partnership
    Partnership in which partners share equally in both responsibility and liability.
  9. Limited Partnership
    Partnership in which only one partner is required to be a general partner.
  10. Limited Liability Partnership (LLP)
    Partnership in which all partners are limited partners.
  11. Articles of Partnership
    A partnership agreement.
  12. Uniform Partnership Act (UPA)
    Act ordering common ownership interests, profit and loss sharing, and shared management responsibilities in a partnership.
  13. Assets
    Money and other valuables belonging to an individual or business.
  14. Corporation
    A legal entity owned by individual stockholders.
  15. Stock
    Certificate of ownership in a corporation.
  16. Closely Held Corporation
    Corporation that issues stock to only a few people, often family members.
  17. Publicly Held Corporation
    Corporation that sells stock on the open market.
  18. Bond
    A formal contract to repay borrowed money with interest at fixed intervals.
  19. Certificate of Incorporation
    License to form a corporation issued by state government.
  20. Dividend
    The portion of corporate profits paid out to stockholders.
  21. Horizontal Merger
    Combination of two ore more firms Competing in the same market with the same good or service.
  22. Vertical Merger
    Combination of two or more firms involved in different stages of producing the same good or service.
  23. Conglomerate
    Business combination merging more than three businesses that make unrelated products.
  24. Multinational Corporation (MNC)
    Large corporation that produces and sells its goods and services throughout the world.
  25. Business Franchise
    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 idea.
  26. Royalty
    Share of earnings given as payment.
  27. Cooperative
    Business organization owned and operated by a group of individuals for their mutual benefit.
  28. Consumer Cooperative
    Retail outlet owned and operated by consumers.
  29. Service Cooperative
    Cooperative that provides a service, rather than a good.
  30. Producer Cooperative
    Agricultural marketing cooperative that helps members sell their products.
  31. Nonprofit Organization
    Institution that functions much like a business, but does not operate for the purpose of generating profits.
  32. Professional Organization
    Nonprofit organization that works to improve the image, working conditions, and skill levels of people in particular occupations.
  33. Business Association
    Nonprofit organization that promotes collective business interests for a city, state, or or other geographical area, or for a group of similar businesses.
  34. Trade Association
    Nonprofit organization that promotes the interests of a particular industry.
Card Set
Econ Chpt 8 Vocab
Words and defs for econ vocab quiz.