unit 4 - forms of business organizations Flashcards
Organizations in the ________ sector are institutions that are controlled or belong to federal, state, or local governments.
public
What is a corporation that is incorporated in one country but produces and sells goods and services in another country?
multinational corporation
What was the personal battle between Edison and Tesla referred to?
the war of the currents
What is the process by which a business moves the production of a good or service from one country to another?
offshoring
What is the process by which a business hires another business to do work for them?
outsourcing
why do businesses exist?
to supply consumers with goods and services
What is a business that is owned, operated, and controlled by one person only or a married couple?
sole proprietorship
Partnerships, unlike sole proprietorships, encourage ______________ among the owners.
collaboration
what is a corporation?
a legal entity run by groups of individuals and owned by stock holders
What is the primary difference between a nonprofit and a for-profit organization?
a nonprofit organization cannot distribute excess earnings nor can they be bought or sold.
What is the type of business where individuals group together to gain advantages for all its members?
cooperatives
What is the owner of a sole proprietorship personally responsible for?
all the business’s debts
While disagreements in partnerships are common, what is a problem that arises when disagreements are not handled properly?
they can have repercussions for the long-term health of the general partnership
In what type of corporation are profits taxed separately from its owners and owners are protected from liability?
C corporations
Although nonprofits are permitted to pay salaries to individuals, many people who work with nonprofit organizations are __________________.
volunteers
