Chapter 8 Business Flashcards
Zoning law
Law in a city or town that designates separate areas of residency and for business
Vertical merger
The combination of two or more firms involved in different stages of producing the same good or service
Uniform partnership act (upa)
Act ordering common ownership interests, profit and loss sharing, and shared management responsibilities in a partnership.
Trade association
Nonprofit organization that promotes the interests of a particular industry
Stock
A certificate of ownership in a corporation
Sole proprietorship
A business owned and managed by a single individual
Service cooperative
Cooperative that provides a service rather than a good
Service cooperative
Cooperative that provides a service rather than a good
Royalty
Share of earnings given as a payment.
Publicly held Corporation
Corporation that sells stock on the open market.
Professional Organization
Nonprofit organization that works to improve the image, working conditions, and skill levels of people in particular occupations
Producer cooperative
Agricultural marketing cooperative that help members sell their products
Nonprofit organization
Institution that functions much like a business but does not operate for the purpose of generating profits
Multi-national corporation
Large corporation that produces and sells goods and services throughout the world
Limited partnership
Only one partner has to be general partner
Limited liability partnership
All partners are limited partners
Liability limited and must remain in state
Liability
The legal obligation to pay all debts
Horizontal merger
The combination of 2 or more firms competing in the same market with the same good or service
General partnership
Partnership in which partners share equally in both responsibility and liability
Fringe benefit
Payment other than wages or salary
Dividend
The portion of corporate profits paid to stockholders
What is not a major disadvantage faced by small businesses?
Unlimited profit potential
What is the difference between a limited partnership and a limited liability partnership?
In a limited liability partnership, all partners are limited from liability in some situations.
Small business
A business with less than 500 employees and sales below 3.5 million a year.
Business license
An authorization from the government to carry on an enterprise.
The most common type of partnership is a….
General Partnership
Most large businesses are
Corporations
The most important decisions in a corporation are made by…
The board of directors
One way a corporation can raise money is by
Selling stock on the stock market
Consumer cooperative
A retail outlet owned and operated by its members
The function of a retail or purchasing cooperative business is to…
Obtain lower prices for its members
A common factor in all nonprofit business is that they…
Pay no income tax
Bond
Corporate certificate that repay loans with interest.
Conglomerate
More than 3 unrelated businesses join together
PROXY
Written permission for someone to vote for you.
Better Business Bureau
Association to provide consumers information about businesses in town
Charter
License to draw up a corporation
