Business Organization Chapter 8 – Flashcards
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sole proprietorship
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a business owned and managed by a single individual
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business organization
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the ownership structure of a company or firm
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business license
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authorization to operate a business issued by a local government
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zoning laws
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laws in a city or town that designate certain areas, or zones, for residencial and business use
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liability
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the legal obligation to pay debts
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fringe benefits
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payments to employees other than wages or salary
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general partnership
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a type of partnership in which all partners share equally in both responsibility and liability
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partnership
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a business organization owned by two or more persons who agree on a specific division of responsibilities and profits
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limited partnership
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a type of partnership in which only one partner is required to be a general partner
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LLP (Limited Liability Partnership)
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a type of partnership in which all partners are limited partners (abbreviation)
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assets
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the money and other valuables belonging to an individual or business
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business franchise
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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
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corporation
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a legal entity, or being, owned by individual stockholders, each of whom has limited liability for the firm's debts
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stock
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a certificate of ownership in a corporation
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closely held corporation
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a type of corporation that issues stock to only a few people, who are often family members
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publicly held corporation
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a type of corporation that sells stock on the open market
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bond
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a formal contract issued by a corporation or other entity that includes a promise to repay borrowed money with interest at fixed intervals
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certificate of incorporation
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a license to form a corporation issued by a state government
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dividend
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the portion of coporate profits paid to stockholders
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LLC
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a type of business with limited liability for the owners with the advantage of not paying corporate income tax (abbreviation)
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conglomerate
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a business combination merging more than three businesses that produce unrelated products or services
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multinational corporation
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a large corporation that produces and sells its goods and services in more than one country
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nonprofit organization
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an institution that functions much like a business, but does not operate for the purpose of generating profit
