Econ UNIT. 3 – Flashcards
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Principal
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The amount someone borrows.
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General Partnership
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Partnership where all partners are responsible for the management and obligations of the business.
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Stockholders
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A person who invests in a corporation by owning stock, or pieces of ownership in it
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Diviend
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A check that gives a stockholder a portion of a business' profit
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Bond
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A written promise to borrow money and repay the money with interest at a future date.
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Common Stock
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Type of stock that indicates basic ownership of a corporation, which confers voting rights.
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Sole Proprietorship
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A business owned and run by a single individual. Most common form of business organization.
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Preferred Stock
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Type of stock that does not give a shareholder voting rights, but gives them dividends first.
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Interest
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The amount of money paid to someone who borrows money, the price of borrowing money
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Partnership
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A business jointly owned by two or more persons.
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Corporation
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A form of business organization recognized by law as a separate legal entity with all the rights of an individual. Sells stock to raise money.
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Stock
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An ownership certificate in a corporation
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Unlimited Liability
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The owner is personally and fully responsible for all losses and debts of a business.
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Limited Partnership
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Partnership where at least one partner is not active in the daily running of the business.
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Inventory
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A stock of finished goods and parts a business keeps on hand
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Horizontal Merger
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When two businesses who produce the same kind of product join forces
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Income Statement
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A report showing a business' sales, net income and cash flows
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Vertical Merger
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Companies who are involved in different stages of manufacturing or marketing joining forces.
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Cash Flow
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The sum of net income and noncash charges. Also known as the "bottom line."
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Conglomerate
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A firm that has at least four businesses who make unrelated products, and none of which is responsible for a majority of its sales.
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Net Income
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The funds left over after all a firm's expenses are subtracted from sales.
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Multinational
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A business that has operations in more than one country.
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Depreciation
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A noncash charge a firm takes for general wear and tear on capital goods.
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Professional Association
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People in a specialized occupation interested in improving working conditions, skill levels and public perceptions of the profession, such as the AMA for doctors and ABA for lawyers.
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Nonprofit Organization
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A company that works in a non-business way to promote the collective interests of its members, rather than seeking profit for its investors.
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Credit Union
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A financial organization that accepts deposits from, and makes loans to, employees of a particular company or agency.
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Public Utilities
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Municipal or investor-owned companies that offer products such as water, sewage and electric service to the public.
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Labor Union
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An organization of workers formed to represent its members' interests, often participating in collective bargaining.
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Cooperatve
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A voluntary association formed to carry an economic activity that will benefit its members.
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Chamber of Commerce
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Organization that promotes the welfare of member businesses within a community.
