Economics Unit 1 Vocabulary: Group C

Front 1

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

Back 1

sole proprietorship

Front 2

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

Back 2

unlimited liability

Front 3

stock of goods held in reserve; includes finished goods waiting to be sold and raw materials to be used in production

Back 3

inventory

Front 4

situation in which a firm legally ceases to exist when an owner dies, quits, or a new owner is added; applies to sole proprietorships and partnerships

Back 4

limited life

Front 5

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; same as general partnership

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partnership

Front 6

form of partnership where one or more partners are not active in the daily running of the business, and whose liability for the partnership’s debt is restricted to the amount invested in the business

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limited partnership

Front 7

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, sue and be sued

Back 7

corporation

Front 8

written government approval to establish a corporation; includes company name, address, purpose of business, number of shares of stock, and other features of the business

Back 8

charter

Front 9

certificate of ownership in a corporation; common or preferred stock

Back 9

stock

Front 10

person who owns a share or shares of stock in a corporation; same as shareholders

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stockholder

Front 11

check paid to stockholders, usually quarterly, representing portion of corporate profits

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dividend

Front 12

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

Back 12

bond

Front 13

amount borrowed when getting a loan or issuing a bond

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principal

Front 14

payment made for the use of borrowed money; usually paid at periodic intervals for long-term bonds or loans

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interest

Front 15

combination of two or more business enterprises to form a single firm

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merger

Front 16

combination of two or more firms producing the same kind of product

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horizontal merger

Front 17

combination of firms involved in different steps of manufacturing or marketing

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vertical merger

Front 18

firm with four or more businesses making unrelated products, with no single business responsible for a majority of its sales

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conglomerate

Front 19

corporation producing and selling without regard to national boundaries and whose business activities are located in several different countries

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multinational

Front 20

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

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non profit organization

Front 21

nonprofit organization performing some kind of economic activity for the benefit of its members

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cooperative

Front 22

company providing essential services such as water and electricity to consumers, usually subject to some government regulations

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public utility

Front 23

combination of two or more firms producing the same kind of product

Back 23

horizontal merger

Front 24

combination of firms involved in different steps of manufacturing or marketing

Back 24

vertical merger

Front 25

firm with four or more businesses making unrelated products, with no single business responsible for a majority of its sales

Back 25

conglomerate

Front 26

corporation producing and selling without regard to national boundaries and whose business activities are located in several different countries

Back 26

multinational

Front 27

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

Back 27

non profit organization

Front 28

nonprofit organization performing some kind of economic activity for the benefit of its members

Back 28

cooperative

Front 29

company providing essential services such as water and electricity to consumers, usually subject to some government regulations

Back 29

public utility