Chapter 8 Business

Question 0

Zoning law

Answer 0

Law in a city or town that designates separate areas of residency and for business

Question 1

Vertical merger

Answer 1

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

Question 2

Uniform partnership act (upa)

Answer 2

Act ordering common ownership interests, profit and loss sharing, and shared management responsibilities in a partnership.

Question 3

Trade association

Answer 3

Nonprofit organization that promotes the interests of a particular industry

Question 4

Stock

Answer 4

A certificate of ownership in a corporation

Question 5

Sole proprietorship

Answer 5

A business owned and managed by a single individual

Question 6

Service cooperative

Answer 6

Cooperative that provides a service rather than a good

Question 7

Service cooperative

Answer 7

Cooperative that provides a service rather than a good

Question 8

Royalty

Answer 8

Share of earnings given as a payment.

Question 9

Publicly held Corporation

Answer 9

Corporation that sells stock on the open market.

Question 10

Professional Organization

Answer 10

Nonprofit organization that works to improve the image, working conditions, and skill levels of people in particular occupations

Question 11

Producer cooperative

Answer 11

Agricultural marketing cooperative that help members sell their products

Question 12

Nonprofit organization

Answer 12

Institution that functions much like a business but does not operate for the purpose of generating profits

Question 13

Multi-national corporation

Answer 13

Large corporation that produces and sells goods and services throughout the world

Question 14

Limited partnership

Answer 14

Only one partner has to be general partner

Question 15

Limited liability partnership

Answer 15

All partners are limited partners

Liability limited and must remain in state

Question 16

Liability

Answer 16

The legal obligation to pay all debts

Question 17

Horizontal merger

Answer 17

The combination of 2 or more firms competing in the same market with the same good or service

Question 18

General partnership

Answer 18

Partnership in which partners share equally in both responsibility and liability

Question 19

Fringe benefit

Answer 19

Payment other than wages or salary

Question 20

Dividend

Answer 20

The portion of corporate profits paid to stockholders

Question 21

What is not a major disadvantage faced by small businesses?

Answer 21

Unlimited profit potential

Question 22

What is the difference between a limited partnership and a limited liability partnership?

Answer 22

In a limited liability partnership, all partners are limited from liability in some situations.

Question 23

Small business

Answer 23

A business with less than 500 employees and sales below 3.5 million a year.

Question 24

Business license

Answer 24

An authorization from the government to carry on an enterprise.

Question 25

The most common type of partnership is a….

Answer 25

General Partnership

Question 26

Most large businesses are

Answer 26

Corporations

Question 27

The most important decisions in a corporation are made by…

Answer 27

The board of directors

Question 28

One way a corporation can raise money is by

Answer 28

Selling stock on the stock market

Question 29

Consumer cooperative

Answer 29

A retail outlet owned and operated by its members

Question 30

The function of a retail or purchasing cooperative business is to…

Answer 30

Obtain lower prices for its members

Question 31

A common factor in all nonprofit business is that they…

Answer 31

Pay no income tax

Question 32

Bond

Answer 32

Corporate certificate that repay loans with interest.

Question 33

Conglomerate

Answer 33

More than 3 unrelated businesses join together

Question 34

PROXY

Answer 34

Written permission for someone to vote for you.

Question 35

Better Business Bureau

Answer 35

Association to provide consumers information about businesses in town

Question 36

Charter

Answer 36

License to draw up a corporation