Chapters 8-9

Question 0

a business owned and managed by a single individual

Answer 0

Sole proprietorship

Question 1

an establishment formed to carry on commercial enterprise.

Answer 1

Business organization

Question 2

authorization to start a business issued by the local government.

Answer 2

Business license

Question 3

Sole proprietorships may also be subject to local zoning

Answer 3

Zoning laws

Question 4

is the legally bound obligation to pay debts.

Answer 4

Liability

Question 5

are payments to employees other than wages or salaries.

Answer 5

Fringe benefits

Question 6

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

Answer 6

Partnership

Question 7

partners share equally in both responsibility and liability.

Answer 7

General partnership

Question 8

only one partner has unlimited personal liability for the firm’s actions.

Answer 8

Limited partnership

Question 9

all partners are limited partners.

Answer 9

Limited liability partnership

Question 10

is a legal document that outlines the terms of the partnership.

Answer 10

Articles of partnership

Question 11

Without articles of a partnership, partners will fall under the rules of the

Answer 11

Uniform partnership act

Question 12

money and other valuables belonging to an individual or business, that contributes to the total capital of the business.

Answer 12

Assets

Question 13

is a legal entity owned by individual stockholders

Answer 13

Corporation

Question 14

certificate of ownership in a corporation.

Answer 14

Stock

Question 15

corporation that issues stock to only a few people, often family members.

Answer 15

Closely held corporations

Question 16

corporation that sells stock on the open market.

Answer 16

Public ally held corporation

Question 17

Certificate of incorporation is a corporate charter that includes crucial information such as:
The corporate name, statement of purpose, length of time that the business will run, founders’ names and addresses, headquarters business address, method of fund-raising, and the rules for the corporation’s management.

Answer 17

Certificate of incorporation

Question 18

joins two or more firms competing in the same market with the same good or service.

Answer 18

Horizontal mergers

Question 19

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

Answer 19

Vertical mergers

Question 20

are firms that have more than three businesses that make unrelated products.

Answer 20

Conglomerates

Question 21

are the world’s largest corporations that produce and sell their goods and services throughout the world

Answer 21

Multinational corporation

Question 22

is a semi-independent business that pays fees to a parent company.

Answer 22

Business franchise

Question 23

is a business organization owned and operated by a group of individuals for their shared benefit

Answer 23

Cooperative

Question 24

retail outlet owned and operated by consumers.

Answer 24

Consumer cooperative

Question 25

they provide a service rather than a good.

Answer 25

Service cooperatives

Question 26

agricultural marketing cooperative that helps members sell their products.

Answer 26

Producer cooperatives

Question 27

are usually in the business of benefiting society.

Answer 27

Nonprofit organizations

Question 28

work to improve the image, working conditions, and skill levels of people in particular occupations

Answer 28

Professional organizations

Question 29

promote the collective business interests of a city, state, or other geographical area, or of a group of similar businesses.

Answer 29

Business associations

Question 30

are nonprofits that promote the interests of a particular industries.

Answer 30

Trade associations

Question 31

Economists consider people to be employed if they are 16 years or older and meet at least one of the following

Answer 31

They worked at least on hour for pay within the past week;
They worked 15 or more hours without pay in a family business, such as a farm;
They held jobs but did not work due to illnesses, vacations, labor disputes, or bad weather.

Question 32

Companies are relying more on temporary employees because:

Answer 32

Flexible employment allows for a quick adjustment to changing demands.
Its easier to discharge temporary employees.
Temporary workers are paid less and receive fewer benefits.
Some workers prefer the flexible schedule of temps.

Question 33

Jobs are often categorized into 4 different categories:

Answer 33

1. Unskilled labor: requires no specialized skills, education, or training.
2. Semi-skilled labor: requires minimal specialized skills and education.
3. Skilled labor: requires specialized abilities and training to do tasks such as operating.
4. Professional labor: demands advanced skills and education.