Economics, Credit 3
Terms in this set (26)
What are the advantages of a sole proprietorship?
It is the least form of business organization
What percentage of businesses are sole proprietorships?
Why is it easier for a partnership to borrow money and to hold good employees than it is for a sole proprietorship to do so?
A partnership has more personal stability and across to more energy
What are royalties?
A percentage of a franchise's earnings paid to the parent company
What is a fringe benefit?
A payment other than wages or salaries
What are the disadvantages of a sole proprietorship?
Lack of performance
What are the money and other valuables that belong to a corporation or partnership called?
What are organizations that are in the business of benefiting society and operate like a business called?
When a doctor shares equal responsibility and liability with her colleagues in their medical practice, what is her practice called?
Your uncle owns a convenience store that has branches nationwide. What is his store an example of?
Why is the equilibrium wage for doctors high?
Supply of doctors is relatively low and the demand is relatively high
Labor unions arose largely in response to what?
Dangerous working conditions and long hours of factory jobs in the 1800s
What is the purpose of the Federal Deposit Insurance Corporation (FDIC)?
To make sure customers do not lose money if a bank fails
What is the interest rate called that the bond issuer pays to the bondholder?
To finance the building of a new police station, a local government is most likely to issue what type of bond?
What happens to your money when you invest in a mutual fund?
Your money is invested in a variety of stocks and bonds
How would you go about investing money in the stock market?
Contact a brokerage firm, who will put him in touch with a stockbroker
What does the term mean "bear market"?
Many investors are selling their stocks in anticipation of lower profit
money or other valuables that belong to a person or business
an establishment formed to carry on commercial enterprise
non-profit association that promotes the interest of a particular industry
an establishment owned by two or more people in which only one person has unlimited personal liability for the business
business owned and managed by a single individual
a formal contract to repay borrowed money with interest at fixed intervals
a business organization owned and operated by a group of individuals for their mutual benefit
a legal entity owned by individual stockholders