Economics Chapters 8 & 10
Order by
66 terms
Terms | Definitions |
|---|---|
 business organization | an establishment formed to carry on commercial enterprise |
| sole proprietorship | a business owned and managed by a single individual |
| business license | authorization to start a business issued by the local government |
| zoning law | law in a city or town that designates separate areas for residency and for business |
| liability | the legally bound obligation to pay debts |
| fringe benefit | Payment other than Wages or Salaries |
| partnership | a business organization owned by two or more persons who agree on a specific division of responsibilities and profits |
| general partnership | partnership in which partners share equally in both responsibility and liability |
| limited partnership | a partnership in which only one partner is required to be a general partner |
| limited liability partnership (LLP) | partnership in which all partners are limited partners |
| articles of partnership | a partnership agreement |
| uniform partnership act (UPA) | act ordering common ownership interests, profits, and loss sharing, and shared management responsibilities in a partnership |
| assets | money and other valuables belonging to an individual or business |
| corporation | a legal entity owned by individual stockholders |
| stock | a share representing a portion of ownership in a corporation |
| closely held corporation | corporation that issues stock to only a few people, often family members |
| publicly held corporation | corporation that sells stock on the open market |
| bond | a certificate issued by a corporation, which promises to repay with interest the amount it borrowed from the buyer |
| certificate of incorporation (corporate charter) | license to form a corporation issued by state government (method of fundraising must be addressed) |
| dividend | the portion of corporate profits paid out to stockholders |
| horizontal merger | the combination of two or more firms competing in the same market with the same good or service |
| vertical merger | the combination of two or more firms involved in different stages of producing the same good or service |
| conglomerate | business combination merging more than three businesses that make unrelated products |
| multinational corporation (MNC) | large corporation that produces and sells its goods and services throughout the world |
| business franchise | a semi-independent business that pays fees to a parent company in return for the exclusive right to sell a certain product or service in a given area |
| royalty | share of earnings given as payments |
| cooperative | a business organization owned and operation by a group of individuals for their mutual benefit |
| consumer cooperative | retail outlet owned and operated by consumers |
| service cooperative | cooperative that provides a service, rather than a good |
| producer cooperative | agricultural marketing cooperative that helps members sell their products |
| nonprofit organization | institution that functions much like a business, but does not operate in order to generate profits |
| professional organization | nonprofit organization that works to improve the image, working conditions, and skill levels of people in particular occupations |
| business association | nonprofit organization that promotes collective business interests for a city, state or other geographical are, or for a group of similar businesses |
| trade association | nonprofit organization that promotes the interests of a particular industry |
| money | anything that serves as a medium of exchange, a unit of account, and store of value |
| medium of exchange | anything that is used to determine value during the exchange of goods and services |
| barter | the direct exchange of one set of goods or services for another |
| unit of account | a means for comparing the values of goods and services |
| store of value | something that keeps its value if it is stored rather than used |
| currency | coins and paper bills used as money |
| commodity money | objects that have value in themselves and that are also used as money |
| representative money | objects that have value because the holder can exchange them for something else of value |
| fiat money | money that has value because the government has declared that it is an acceptable means to pay debts, and is accepted by the people |
| bank | an institution for receiving, keeping and lending money |
| national bank | a bank chartered, or licensed by the national government |
| bank run | widespread panic in which great numbers of people try to redeem their paper money |
| greenback | paper currency issued during the civil war |
| gold standard | a monetary system in which paper money and coins are equal to the value of a certain amount of gold |
| federal reserve system | the nations central banking system |
| central bank | bank that can lend to other banks in times of need |
| member bank | bank that belongs to the federal reserve system |
| federal reserve note | the national currency we use today in the united states |
| great depression | the severe economic decline that began in 1929 and laster for more than a decade |
| federal deposit insurance corporation (FDIC) | the government agency that insures customer deposits if a bank fails |
| money supply | all the money available in the united states economy |
| liquidity | the ability to be used as, or directly converted to cash |
| demand deposit | the money in checking accounts |
| money market mutual fund | a fund that pools money from small savers to purchase short-term government and corporate securities |
| fractional reserve banking | a banking system that kepps only a fraction of funds on hand and lends out the remainder |
| default | failure to pay back a loan |
| mortgage | a specific type of loan that is used to buy real estate |
| credit card | a card entitling its holder to buy goods and services based on the holders promise to pay for these goods and services |
| interest | the price paid for the use of borrowed money |
| principal | the amount of money borrowed |
| debit card | a card used to withdraw money |
| creditor | person or institution to whom money is owed |
First Time Here?
Welcome to Quizlet, a fun, free place to study. Try these flashcards, find others to study, or make your own.