chapter 8 Business Organization Economics

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inventory
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A record listing the merchandise on hand at any given point in time is called a(n):
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receipts
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income received from the sale of goods and/or services; also, slips of paper documenting a purchase
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Elements of business operations
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Expenses, advertising, record keeping and risk
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sole proprietorships
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Businesses owned and operated by one individual; the most common form of business organization in the United States
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partnership
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A business in which two or more persons combine their assets and skills
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assets
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all items to which a business or household hold legal claim.
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limited partnership
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A partnership that includes at least one general partner who actively manages the company and accepts unlimited liability and one limited partner who gives up the right to actively manage the company in exchange for limited liability
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joint venture
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A partnership created by two or more companies for a specific purpose over a set period of time
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articles of incorporation
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Document filed with a U.S. state by the founders of a corporation. After approving the articles, the state issues a certificate of incorporation; the two documents together become the CHARTER that gives the corporation its legal existence.
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limited liability
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A form of business ownership in which the owners are liable only up to the amount of their individual investments.
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corporation
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A body formed and authorized by law to act as a single person, distinct from its members or owners
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franchise
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A written contract granting permission to sell someone else’s product or service in a prescribed manner, over a certain period of time, and in a specified territory.

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