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28 Cards in this Set
- Front
- Back
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What is the advantage of a sole proprietorship?
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It is the least regulated form of business organization
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What percentage of businesses are sole proprietorships?
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75 percent
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If a general partnership fails, who is responsible for the debts?
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all of the partners
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A joining of two or more businesses that are involved in different stages of producing the same good or service is called?
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vertical merger
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Why is it easier for a partnership to borrow money and to hold good employees than it is for a sole proprietorship to do so?
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A partnership has more personal stability and access to more money
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What is the major difference between a corporation and other kinds of businesses?
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A corporation has a separate entity apart from that of the owners and workers
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What are royalties?
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a percentage of earnings paid for a franchise
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Which of the following represents the percentage of all U.S. businesses that are corporations, and the percentage of all goods that those corporations sell?
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20 percent of businesses; 90 percent of goods sold
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What is a fringe benefit?
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a payment other than wages or salaries
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Which of the following is a disadvantage of a sole proprietorship?
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lack of permanence
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What are the money and other valuables that belong to a corporation or partnership called?
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assets
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What are organizations that are in the business of benefiting society and operate like a business called?
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nonprofit organizations
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Which of the following is a business organization owned by a group of people for their mutual benefit?
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a cooperative
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An establishment owned by two or more persons in which only one person has unlimited personal liability for the business
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limited partnership
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nonprofit association that promotes the interests of a particular industry
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trade association
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money and other valuables belonging to an individual or business
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assets
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a business owned and managed by a single individual
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sole proprietorship
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a business organization owned and operated by a group of individuals for t heir mutual benefit
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cooperative
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a legal entity owned by individual stockholders
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corporation
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a certificate issued by a corporation promising to repay a loan with interest to the buyer
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bond
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The legally bound obligation to pay debts
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liability
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A share representing a portion of ownership in a corporation
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stock
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Authorization to start a business issued by a local government
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business license
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The portion of corporate profits paid out to stockholders
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dividend
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Regulation in a city or town that designates separate areas for residency and business
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zoning law
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An institution that functions like a business but does not operate in order to generate profits
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nonprofit organizations
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The joining of two or more firms competing in the same market with the same good or service
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horizontal merger
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A business in which the owners share equally in both responsibility and liability
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general partnership
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