Ecenomics Test Ch. 8 & 9

Question 0

Sole proprietorship

Answer 0

a business owned and managed by a single individual.

Question 1

business organization

Answer 1

establishment formed to carry on commercial enterprise.

Question 2

Business license

Answer 2

authorization to start a business issued by the local government.

Question 3

Liability

Answer 3

Liability is the legally bound obligation to pay debts.

Question 4

Fringe benefits

Answer 4

Fringe benefits are payments to employees other than wages or salaries.

Question 5

Partnership

Answer 5

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

Question 6

General partnership

Answer 6

partners share equally in both responsibility and liability.

Question 7

Limited partnership

Answer 7

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

Question 8

Limited liability partnership

Answer 8

all partners are limited partners.

Question 9

Articles of partnership

Answer 9

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

Question 10

Assets

Answer 10

money and other valuables belonging to an individual or business

Question 11

Corporation

Answer 11

legal entity owned by individual stockholders.

Question 12

Stock

Answer 12

a certificate of ownership in a corporation.

Question 13

Closely held corporations

Answer 13

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

Question 14

Publicly held corporations

Answer 14

corporation that sells stock on the open market.

Question 15

Horizontal mergers

Answer 15

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

Question 16

Vertical mergers

Answer 16

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

Question 17

Conglomerates

Answer 17

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

Question 18

Multinational Corporations

Answer 18

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

Question 19

Business franchise

Answer 19

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

Question 20

Consumer cooperatives

Answer 20

retail outlet owned and operated by consumers.

Question 21

Service cooperatives

Answer 21

they provide a service rather than a good.

Question 22

Producer cooperatives

Answer 22

agricultural marketing cooperative that helps members sell their products.

Question 23

Nonprofit organization

Answer 23

are usually in the business of benefiting society.

Question 24

Professional organizations

Answer 24

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

Question 25

Business associations

Answer 25

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

Question 26

Trade associations

Answer 26

are nonprofits that promote the interests of a particular industries

Question 27

Learning effect

Answer 27

the theory that education increases productivity and results in higher wages.

Question 28

Screening effect

Answer 28

the theory that the completion of college indicates intelligence and a strong work ethic.

Question 29

Derived demand

Answer 29

demand that is determined by demand for another good or service.

Question 30

Equilibrium wage

Answer 30

the wage rate that produces neither an excess supply of workers nor an excess demand for workers in the labor market.

Question 31

Lass ceiling

Answer 31

an unofficial, invisible barrier that prevents women and minorities from advancing in business dominated by white women.