Econ Vocab 8

Question 1

Business organization

Answer 1

an enterprise that produces goods or provides

Question 2

Sole proprietorship

Answer 2

a business owned and managed by a single person

Question 3

Limited life

Answer 3

a situation in which a business ceases to exist if the owner dies, retires, or leaves the business for some other reason

Question 4

unlimited liability

Answer 4

a situation in which a business owner is responsible for all the losses, debts, and other claims against the business

Question 5

Partnership

Answer 5

a business co-owned by two or more people, or “partners,” who agree on how responsibilities, profits, and losses will be divided

Question 6

General partnership

Answer 6

a partnership in which partners share responsibility for managing the business and each one is liable for all business debts and losses

Question 7

limited partnership

Answer 7

a partnership in which at least one partner is not involved in the day-to-day running of business and is liable only for the funds he or she has invested

Question 8

limited liability partnership(LLP)

Answer 8

a partner in which all partners are limited partners are limited partners and not responsible for the debts and other liabilities of other partners.

Question 9

Corporation

Answer 9

a business owned by individuals, called shareholders or stockholders.

Question 10

Stock

Answer 10

shares of ownership in the corporation

Question 11

Dividend

Answer 11

part of the profit that the company pays out to stockholders

Question 12

Public company

Answer 12

A corporation that issues stock that can be freely bought and sold

Question 13

Private company

Answer 13

One that retains control over who can buy or sell the stock

Question 14

limited liability

Answer 14

means that the business owner’s liability for business debts and losses is limited

Question 15

Unlimited life

Answer 15

they continue to exist even after a change in ownership

Question 16

Horizontal merger

Answer 16

describes the joining of companies that offer the same or similar products or services

Question 17

vertical merger

Answer 17

describes the combining of companies involved in different steps of production or marketing of a product or service

Question 18

Conglomerate

Answer 18

results from a merger of companies that produce unrelated goods or services.

Question 19

Multinational corporation

Answer 19

a large corporation with branches in several countries

Question 20

Franchise

Answer 20

a business made up of semi-independent businesses that all offer the same products or services

Question 21

Franchisee

Answer 21

the individual businesses. Fast food restaurants are a good example

Question 22

Cooperative

Answer 22

a type of business operated for the shared benefit of the owners

Question 23

Nonprofit organization

Answer 23

an institution that acts like a business organization, but its purpose is usually to benefit society, not to make a profit