Unit 2 & 3 Flashcards
An entity designed to ORGANIZE RAW MATERIALS, LABOR AND MACHINES with the goal of producing goods and/or services.
Business Firm
PURCHASE PRODUCTIVE RESOURCES from HOUSEHOLD and OTHER FIRMS, Transform them into different commodity, and Sell the transformed product or service to consumers
Firms
A business OWNED BY A PERSON who has
complete control over business decisions.
Proprietorship
A LEGAL ARRANGEMENT in which TWO OR MORE PERSONS agree to contribute capital or services to the business and divide the profits or losses that may be derived therefrom.
Partnership
An ARTIFICIAL BEING created by law and is a legal entity SEPARATE and distinct from its owners.
Corporation
is a term used to describe the INCREASING CONNECTEDNESS and interdependence of WORLD CULTURES and economies. (National Geographic)
Globalization
is the practice of HIRING A THIRD PARTY TO PROVIDE, manage or handle a business function that could otherwise be performed internally
Outsourcing
The FORMAL DOCUMENT that legally
allows a corporation to legally allows
a corporation to begin operations.
Charter
The person or persons WHO SUBMIT A FORMAL APPLICATION with the
appropriate government agencies to
form a corporation
Incorporators
The owners of a corporation
Shareholders
A LEGAL DOCUMENT providing evidence
of ownership in a corporation
Stock Certificate
RULES ESTABLISHED to conduct the
business of a corporation
By Laws
An ARBITRARY VALUE placed on either
common stock or preferred stock at
the time a corporation is formed
Par value
The GROUP OF MEN AND WOMEN who
have the ULTIMATE RESPONSIBILITY for
managing a corporation
Board of Directors
ANY AMOUNT RECEIVED BY A CORPORATION when it issues a stock
that is greater than the par value of
the stock issued
Additional paid in capital
