chapter 8 vocabulary

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business organization
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an establishment formed to carry on commercial enterprise
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sole proprietorship
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a business owned and managed by a single individual
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business license
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authorization to start a business issued by the local government
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zoning law
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law in a city or town that designates separate areas for residency and for business
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liability
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the legally bound obligation to pay debts
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fringe benefit
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payment other than wages or salaries
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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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general partnership
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partnership in which partners share equally in both responsibility and liability
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limited partnership
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partnership in which only one partner is required to be a general partner
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limited liability partnership (LLP)
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partnership in which all partners are limited partners
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articles of partnership
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a partnership agreement
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uniform partnership act (UPA)
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act ordering common ownership interests, profit and loss sharing, and shared management responsibilities in a partnership
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assets
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money and other valuables belonging to an individual or business
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corporation
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a legal entity owned by individual stockholders
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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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corporation that issues stock to only a few people, often family members
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publicly held corporation
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corporation that sells stock on the open market
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bond
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a formal contract to repay borrowed money with interest at fixed intervals
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certificate of incorporation
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license to form a corporation issued by state government
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dividend
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the portion of corporate profits paid out to stockholders
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horizontal merger
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the combination of two or more firms involved in different stages of producing the same good or service
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vertical merger
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the combination of two or more firms involved in different stages of producing the same good or service
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conglomerate
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business combination merging more than three businesses that make unrelated products
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multinational corporation (MNC)
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large corporation that produces and sells its goods and services throughout the world
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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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royalty
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share of earnings given as payment
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cooperative
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a business organization owned and operated by a group of individuals for their mutual benefit
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consumer cooperative
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retail outlet owned and operated by consumers
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service cooperative
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cooperative that provides a service, rather than a good
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producer cooperative
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agricultural marketing cooperative that helps members sell their products
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non profit organization
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institution that functions much like a business, but does not operate for the purpose of generating profits
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professional
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non profit organization that works to improve the image, working conditions, and skill levels of people in particular occupations
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business association
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non profit organization that promotes collective business interests for a city, state, or other geographical area, or for a group of similar businesses
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trade association
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non profit organization that promotes the interest of a particular industry

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