section3/4 vocab

Question 0

permits the formation of the new corporation

Answer 0

corporate charter

Question 1

a business in which a group of owners share in the profits and losses

Answer 1

corporations

Question 2

made up of people from inside or outside the company. corporation’s key decision making body

Answer 2

board of directors

Question 3

represents ownership of the firm

Answer 3

stocks

Question 4

a portion of stock

Answer 4

shares

Question 5

the profits paid to you as a shareholder

Answer 5

dividends

Question 6

provides shareholders with a voice in how the company is run and a share in any potential dividends

Answer 6

common stock

Question 7

provides guaranteed dividends but does not grant shareholders a voice in running the corporation

Answer 7

preferred stock

Question 8

a certificate issued by a corporation in exchange for money borrowed from an investor

Answer 8

corporate bond

Question 9

the actual amount of money that was borrowed

Answer 9

principal

Question 10

the amount that the borrower must pay for the use of funds

Answer 10

interest

Question 11

occurs when one company joins with or absorbs another

Answer 11

merger

Question 12

a merger between two or more companies producing the same good or service

Answer 12

horizontal combination

Question 13

a merger between two or more companies involved in different production phrases

Answer 13

vertical combination

Question 14

a merger of companies producing unrelated products

Answer 14

conglomerate combination

Question 15

distinct divisions

Answer 15

subsidiaries

Question 16

an enterprise that uses the original company’s name to sell goods and services

Answer 16

franchises

Question 17

businesses that are owned collectively by their members

Answer 17

cooperatives

Question 18

Works in a businesslike way to provide goods and services while pursuing other goals

Answer 18

Nonprofit organization