Economics Chapter 8 Vocab Flashcard
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A business organization owned and operated by a single individual
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Sole Proprietorship
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What is the most popular type of business in the US?
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Sole Proprietorship
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A business owned by by 2 or more persons who agree on a specific division of responsibilities and profit
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Partnership
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The most common type; All partners share equally in responsibility and liability
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General Partnership
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One or more partners is not involved in day-to-day operations of the business
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Limited Partnership
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A new form of business allowed in some states
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Limited Liability Partnership
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A semi-independent business that pays fees to a parent company
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Business Franchise
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Develops the product and works with franchise owners to produce and sell the products
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Franchiser
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The most complex form of a business organization
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Corporation
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A form of business recognized by law as having a seperate legal identity
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Corporation
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Hold certificates of ownership in the company (corporation)
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Stockholders/Shareholders
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Issue stock to only a few people, often family members
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Closely Held Corporations
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Have many shareholders who can buy and sell stock in financial markets
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Publicly Held Corporations
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Owners (stockholders) elect a board of directors to make all major decisions
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Structure of a Corporation
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Appoints/hires corporate officers to run the company and oversee all operations
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Board of Directors
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Combinations of 2 of more businesses to produce a single firm
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Mergers
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2 or more firms that produce the same product or service merge
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Horizontal Merger
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Firms involved in different steps of manufacturing or marketing combine
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Vertical Merger
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A firm with at least 3 businesses, each making unrelated products, none of which is responsible for a majority of profits
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Conglomerate
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Manufacturing and/or service locations in a number of countries
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Multinational Corporation
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Formed to operate for the benefit of their members
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Cooperatives
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Have voluntary and open membership; Controlled by its members; Members share the benefits
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Cooperatives
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Sell merchandise to members at reduced prices (Sam's Club, Costco, etc.)
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Consumer Co-ops
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Offer discounted insurance, banking, health care, legal services, etc.
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Service Co-ops
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Agricultural marketing co-ops that help members sell their products (Ocean Spray Cranberry products, Florida's Natural Orange Juice), etc.)
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Producer Co-ops
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Function like businesses but do not operate to generate a profit; They work to benefit the public
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Nonprofit Organization
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Nonprofits that work to improve the image, working conditions, and skill levels of people in particular professions
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Professional Organizations
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Nonprofits that promote that interest of all businesses within a geographical area such a city or country
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Business Associations
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Nonprofits that promote the interests of particular industries nationwide
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Trade Associations
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Organizations of workers whose aim is to improve working conditions, hours, wages, and benefits for members
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Labor Unions
