Business Flashcards
Business Organization
Establishment formed to carry on commercial enterprise
Sole Proprietorship
Business owned and managed by a single individual
Business License
Authorization to operate a business issued by a local government
Zoning Law
Law in a city or town that designates separate areas for residential and business
Liability
Legally bound obligation to pay debts
Fringe Benefit
Payment other than wages or salary
Partnership
Business organization owned by two or more persons who agree on a specific division of responsibilities and profits
General Partnership
Type of partnership in which all partners share equally in both responsibility and liability
Limited Partnership
Partnership in which only one partner is required to be a general partner
Limited Liability Partnership (LLP)
Partnership in which all partners are limited partners
Articles of Partnership
Partnership agreement
Uniform Partnership Act (UPA)
Act ordering common ownership interests, profit and loss sharing, and shared management responsibilities in a partnership
Assets
Money and other valuables belonging to an individual or business
Corporation
Legal entity owned by individual stockholders
Stock
Share representing a portion of ownership in a corporation
Closely Held Corporation
Corporation that issues stock to only a few people, often family members
Publicly Held Corporation
Corporation that sells stock on the open market
Bond
Certificate issued by a corporation, which promises to repay with interest the amount borrowed from the buyer
Certificate of Incorporation
License to form a corporation issued by state government
Dividend
Portion of corporate profits paid out to stockholders
Horizontal Merger
Combination of two or more firms competing in the same market with the same good or service
Vertical Merger
Combination of two or more firms involved in different stages of producing the same good of service
Conglomerate
Business combination merging more than three businesses that make unrelated products
Multinational Corporation
Large corporation that produces and sells its goods and services throughout the world
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 area
Royalty
Share of earnings given as payment
Cooperative
Business organization owned and operated by a group of individuals for their mutual benefit
Consumer Cooperative
Retail outlet owned operated by consumers
Service Cooperative
Cooperative that provides a service rather than a good
Producer Cooperative
Agricultural marketing cooperative that helps members sell their products
Nonprofit Organization
Institution that functions much like a business, but does not operate for the purpose of generating profits
Professional Organization
nonprofit organization that works to improve the image, working conditions, and skill levels of people in particular occupations
Business Association
Nonprofit organization that promotes collective business interests for a city, state, or other geographical area, or for a group of similar businesses
Trade Association
Nonprofit organization that promotes the interests of a particular industry
