Chp 8 Vocab

Question 1

Also known as an enterprise, or firm, is an organic valves the in trade of goods, services, or both to consumers.

Answer 1

Business

Question 2

Difference between the costs and the selling

Answer 2

Profit

Question 3

Creator and owner of the business

Answer 3

Franchise

Question 4

Person that invests in the business

Answer 4

Franchisee

Question 5

Sole proprietorship

Answer 5

Owned and run by 1 person,
Entitled to all profits
Responsible for all debts and losses

Question 6

Partnership

Answer 6

General- all parties have equal responsibility and are liable for debts
Limited- not active in running day to day, simply invest

Question 7

Corporations-

Answer 7

Business owned by shareholders who elect a board of directors who oversee the daily operation of the business.

Question 8

Limited liability

Answer 8

Usually a combination of a corporation and a partnership, give personal liability protection
No tax on company
Mainly owned by one or two individual 
Usually small companies
Exceptions Nike, Amazon, apple

Question 9

Franchise

Answer 9

A business investment that involves renting, or leasing another corporation business
They act as an agent for company,s product