Chapter 8: Business Organizations Flashcards
an establishment formed to carry on commercial enterprise
business organization
a business owned and managed by a single individual
sole proprietorship
authorization to start a business issued by the local government
business liscense
law in a city or town that designates separate areas for residency and business
zoning law
the legally bound obligation to pay debtss
liability
payment other than wages or salaries
fringe benefits
a business organization owned by two or more persons who agree on a specific division or responsibilities and profits
partnership
partnership in which partners share equally in both responsibility and liability
general partnership
partnership in which only one partner is required to be a general partner
limiter partnership
partnership in which all partners are limited partners
limited liability partnership (LLP)
a partnership agreement
articles of partnership
act ordering common ownership interests, profit and loss sharing, and shared management responsibilities in a partnership
Uniform Partnership Act (UPA)
money and other valuables belonging to an individual or business
assets
a legal entity owned by individual stockholders
corporation
a certificate of ownership in a corporation
stock
corporation that issues stock to only a few people, often family members
closely held corporation
corporation that sells stock on the open market
publicly held corporation
a formal contract to repay borrowed money with interest at fixed intervals
bond
license to form a corporation issued by a state government
certificate of incorporation
the portion of corporate profits paid out to stockholders
dividend
the combination of two or more firms competing in the same market with the same good or service
horizontal merger
the combination of two or more firms involved in different stages of producing the same good or service
vertical merger
business combination merging more than three businesses that make unrelated products
conglomerate
large corporation the produces and sells it goods and services throughout the world
multinational corporation (MNC)
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 given area
business franchise
share of earnings given as payment
royalty
a business organization owned and operated by a group of individuals for their mutual benefit
cooperative
retail outlet owned and operated by consumers
consumer cooperative
cooperative that provides a service, rather than a good
service cooperative
agricultural marketing cooperative that helps members sell their products
producer cooperative
institution that functions much like a business, but does not operate for the purpose of generating profits
nonprofit organization
nonprofit organization that works to improve the image, working conditions, and sill levels of people in particular occupations
professional organization
nonprofit organization that promotes collective business interests for a city, state, or other geographical area, or for a group of similar businesses
business association
nonprofit organization that promotes the interests of a particular industry
trade associations
