Economics Unit 1 Vocabulary: Group C
Terms
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- unincorporated business owned and run by s single person who has rights to all profitd and unlimited liability for all debts of the firm; most common form of business organization in the United States
- sole proprietorship
- requirement that an owner is personally and fullf responsible for all losses and debts of a business; applies to proprietorships, general partnerships
- unlimited liability
- stock of goods held in reserve; includes finished goods waiting to be sold and raw materials to be used in production
- inventory
- situation in which a firm legally ceases to exist when an owner dies, quits, or a new owner is added; applies to sole proprietorships and partnerships
- limited life
- unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm; same as general partnership
- partnership
- form of partnership where one or more partners are not active in the daily running of the business, and whose liability for the partnership’s debt is restricted to the amount invested in the business
- limited partnership
- written government approval to establish a corporation; includes company name, address, purpose of business, number of shares of stock, and other features of the business
- charter
- certificate of ownership in a corporation; common or preferred stock
- stock
- person who owns a share or shares of stock in a corporation; same as shareholders
- stockholder
- check paid to stockholders, usually quarterly, representing portion of corporate profits
- dividend
- formal contract to repay borrowed money and interest on the borrowed money at regular future intervals
- bond
- amount borrowed when getting a loan or issuing a bond
- principal
- payment made for the use of borrowed money; usually paid at periodic intervals for long-term bonds or loans
- interest
- combination of two or more business enterprises to form a single firm
- merger
- combination of two or more firms producing the same kind of product
- horizontal merger
- combination of firms involved in different steps of manufacturing or marketing
- vertical merger
- firm with four or more businesses making unrelated products, with no single business responsible for a majority of its sales
- conglomerate
- corporation producing and selling without regard to national boundaries and whose business activities are located in several different countries
- multinational
- - economic institution that operates like a business but does not seek financial gain; schools, churches, community service organizations
- non profit organization
- nonprofit organization performing some kind of economic activity for the benefit of its members
- cooperative
- company providing essential services such as water and electricity to consumers, usually subject to some government regulations
- public utility