chapter 8 Flashcards
business organization
enterprise that produces or provides a good or service
partnership
business co-owned by 2 or more people
nonprofit organization
institution that acts like a business but exists to benefit society
limited liability
business structure or situation, in which the owners liability for debts/losses is legally limited
multinational corporation
a corporation with branches in several countries
sole proprietorship
business owned by one person
dividend
part of a corporations profit that is paid to stockholders
stock
shares of ownership in a corporation
unlimited liability
business owners liability is not limited and his personal assets are not protected
franchise
a business made up of semi-independent businesses that all offer the same products or services
limited life
corporation ceases to exist when the owner retires or dies
merger
2 or more businesses join together to create a single company
horizontal merger
2 or more companies join together, which offer the same or similar products
vertical merger
2 or more companies join together, who produce very different goods/services, in order to join those goods/service into one finished product
private company
corporation that controls who can buy or sell its stock (51% of stock is held by one person)
