Midterm Flashcards
Proxy
A legal form listing issues to be decided at a stockholders’ meeting and enabling stockholders to transfer their voting rights to some other individual or individuals
Dumping
Exportation of large quantities of a product at a price lower than that of the same product in the home market
Consumer goods
Drill press = nonconsumer goods
Embargo
A complete halt to trading with a particular nation or in a particular product
Quota
A limit on the amount of a particular good that may be imported into a country during a given period of time
Social responsibility
The recognition that business activities have an impact on society and the consideration of that impact in business decision making
What is the ultimate purpose of a corporation
Make money by providing goods or services that satisfy the needs of a consumer
Corporation
An artificial person created by law with most of the legal rights of a real person, including the rights to start and operate a business, to buy or sell property, to borrow money, to sue or be sued, and to enter into binding contracts
Non-profit
A corporation organized to provide a social, educational, religious, or other service rather than to earn a profit
Service economy
An economy in which mote effort is devoted to the production of services than to the production of goods
Limited liability company
A form of business ownership that combines the benefits of a corporation and a partnership while avoiding some of the restrictions and disadvantages of those forms of ownership
Limited partnership
A person who invests money in a business but has no management responsibility or liability for losses beyond the amount he or she invested in the partnership
Partnership
A voluntary association of two or more persons to act as co-owners of a business for profit
Oligopoly
A market or industry in which there are few sellers
Demand
The quantity of a product that buyers are willing to purchase at each of various prices
Supply
The quantity of a product that producers are willing to seek at each of various prices
Monetary policies
Federal reserves decisions that determine the size of the supply of money in the nation and the level of interest rates
Fiscal policies
Government influence on the amount of savings and expenditures; accomplished by altering the tax structure and by changing the levels of government spending
World trade organization (WTO)
Powerful successor to GATT that incorporates trade in goods, services, and ideas
Licensing
A contractual agreement in which one firm permitted another to produce and market its product and use its brand name in return for a loyalty or other compensation
Letter of credit
A legal document issued by a bank or other financial institution guaranteeing to pay a seller a staged amount for a specified period of time
How do you calculate profit?
Sales - expenses = profit
Open stock
A corporation whose stock can be bOught and sold by any individual
Closed stock
Stock that is owned by relatively few people and is not sold to the general public
Alien corporation
A corporation chartered by a foreign government and conducting business in the United States
Ethics
The study of right and wrong and of the morality of the choices individuals make
Common stock
Stock owned by individuals or firms who may vote on corporate matters but whose claims on profits and assets are subordinate to the claims of others
Dividend
A distribution of earnings to the stockholders of a corporation
Federal trade commission (FTC)
A five member committee charged with the responsibility of investigating illegal trade practices and enforcing antitrust laws
Absolute advantage
The ability to produce a specific product more efficiently than any other nation
Comparative advantage
The ability to produce a specific product more efficiently than any other product
Social audit
A comprehensive report of what an organization has done and is doing with regard to social issues that affect it
Whistle-blowing
Informing the press or government officials about unethical practices within ones organizations
