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29 Cards in this Set

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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
sole proprietorship
requirement that an owner is personally and fullf responsible for all losses and debts of a business; applies to proprietorships, general partnerships
unlimited liability
stock of goods held in reserve; includes finished goods waiting to be sold and raw materials to be used in production
inventory
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
limited life
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
partnership
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
limited partnership
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
corporation
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
charter
certificate of ownership in a corporation; common or preferred stock
stock
person who owns a share or shares of stock in a corporation; same as shareholders
stockholder
check paid to stockholders, usually quarterly, representing portion of corporate profits
dividend
formal contract to repay borrowed money and interest on the borrowed money at regular future intervals
bond
amount borrowed when getting a loan or issuing a bond
principal
payment made for the use of borrowed money; usually paid at periodic intervals for long-term bonds or loans
interest
combination of two or more business enterprises to form a single firm
merger
combination of two or more firms producing the same kind of product
horizontal merger
combination of firms involved in different steps of manufacturing or marketing
vertical merger
firm with four or more businesses making unrelated products, with no single business responsible for a majority of its sales
conglomerate
corporation producing and selling without regard to national boundaries and whose business activities are located in several different countries
multinational
- economic institution that operates like a business but does not seek financial gain; schools, churches, community service organizations
non profit organization
nonprofit organization performing some kind of economic activity for the benefit of its members
cooperative
company providing essential services such as water and electricity to consumers, usually subject to some government regulations
public utility
combination of two or more firms producing the same kind of product
horizontal merger
combination of firms involved in different steps of manufacturing or marketing
vertical merger
firm with four or more businesses making unrelated products, with no single business responsible for a majority of its sales
conglomerate
corporation producing and selling without regard to national boundaries and whose business activities are located in several different countries
multinational
- economic institution that operates like a business but does not seek financial gain; schools, churches, community service organizations
non profit organization
nonprofit organization performing some kind of economic activity for the benefit of its members
cooperative
company providing essential services such as water and electricity to consumers, usually subject to some government regulations
public utility