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Economics Chapter 8

Terms in this set (24)

Business Organization
an establishment formed to carry on a comercial 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 city that designates seperate areas for residency and for business.
Liability
the legally bound obligation to pay debts
Fringe benefit
payments other than salary or wages .
Partnership
a business organization owned by two or more personswho agree on a specific division of responsibilities and profits .
general parnership
parfnership in which partners share equally in both responsibilty and liability.
limited partnership
partnership in which one partner is requried to be a general partner.
limited liability partnership
partnership where all partners are limited partners .
Articles Of Partnership
A partnership agreement
Uniform Partnership Act
Aft ordering common ownership interests, profit and loss sharing
assets
money or valuables belonging to an individual or business .
Corporation
a legal entity owned by individual stockholders.
stock
a certification of ownership in a corporation.
Closely held corporation
corporation that issues to only a few people, often family members
Publicly held corporation
corporation that sells stock on the open market.
Bond
a formal contract to repay borrowed money with interest and fixed intervals.
Certificate of incorporation
license to form a corporation issued by the state government.
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 of creating the same good or service.
Conglomerate
business combination merging more than three businesses creating unrelated products.
Multinational corporation
large corporation that produces and sells its goods and services throughout the world .
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