Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Loe > chapter 8 > Flashcards

chapter 8 Flashcards

1
Q

the ownership structure of a company or firm

A

business organization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

authorization to operate a business issued by a local government

A

business license

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

laws in a ciity or town that designate certain areas, or zones, for residential and business use

A

zoning laws

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

the legal obligation to pay debts

A

liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

a business organization owned by two or more persons who agree on a specific division of responsibilities and profits

A

partnership

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

general partnership

A

a type of partnership in which all partners share equally in both responsibility and liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

limited partnership

A

a type of partnership in which only one partner id required to be a general partner

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

limited liability partnership

A

a type of partnership in which all partners are limited partners

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

a partnership agreement that spells out each partners rights and responsibilities

A

articles of partnership

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

the money and other valuables belonging to an individual or business

A

assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

a 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 giving area

A

business franchise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

the share of earnings given by a franchise as payment to the franchiser

A

royalties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

corporation

A

a legal entity, or being, owned by individual stockholders, each of whom has limited liability for the firms debts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

stock

A

a certificate of ownership in the corperation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

a type of corporation that issues stock to only a few people, who are often family members

A

closely held corporation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

a type of corporation that sells stock on the open market

A

publicly held corporation

17
Q

a formal contract issued by a corporation or other entity that includes a promise to repay borrowed money with interest at fixed intervals

A

bond

18
Q

a license to form a corporation issued by a state government

A

certificate of incorporation

19
Q

the portion of corporate profits and out to stockholders

A

dividend

20
Q

a type of business with limited liability for the owners, with the advantage of not paying corporate income tax

A

limited liability corporation

21
Q

horizontal merger

A

the combination of two or more firms competing in the same market with the same good or service

22
Q

vertical merger

A

two or more firms involved in different stages of producing the same good or service

23
Q

conglomerate

A

a business combination merging more than three businesses that produce unrelated products or services

24
Q

a large corporation that produces and sells its goods and services in more than one country

A

multinational corporation

25
Q

What are four elements common to all businesses?

A

expenses
advertising
receipts and record keeping
risk

26
Q

what two steps must entrepreneurs take before starting a business?

A

they must gather the factors of production

decide on the form of business organization that best suits their purpose

27
Q

List and briefly explain the four advantages of sole proprietorships

A
  • easy to start - with just a small amount of paper work and legal exspense, just about anyone can start such a business
  • relatively few regulations - least regulated form of business organization
  • sole receiver profit - owner keeps profits
  • full control - all the shots called by one owner
28
Q

list and briefly explain the three disadvantages of sole proprietorships?

A

unlimited personal liability - personally responsible for all business debts
limited access to resources - pay for things out of pocket
lack of permanence - when an owner of a business dies and no one buys or takes over and keeping employees

29
Q

list and briefly explain the advantages of partnerships

A

ease to start up - no written partnership law
financial impact - one or more person contributes
shared decision making - joining strengths and weaknesses

30
Q

list and briefly explain the three disadvantages of partnerships

A

unlimited liability - could louse everything
potential for conflict - disagreements between partners
lack of permanence - if one partner dies then the other could receive sole ownership

31
Q

list the two advantages of corporations to stockholders

A
  • gain benefit of limited liability

- provide flexibility

32
Q

list the three advantages of corporations to the corporation

A
  • more potential growth
  • raise large amounts of capital
  • long life
33
Q

list the four disadvantages of corporations

A
  • more regulation
  • difficulty and expense of start up
  • double taxation
  • loss of control
34
Q

a business owned and managed by a single individual

A

sole proprietorship

Loe (15 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions