economics 3 – Flashcards

question
unlimited liability
answer
required that an owner is personally and fully responsible for all loss and debts
question
inventory
answer
stock of goods held in reserve; includes finished goods waiting to be sold and raw materials to be used in production
question
limited life
answer
situation in which a firm legally ceases to exist when an owner dies, quits, or a new owner is added; applies to sole proprietorships and partnerships
question
limited partnership
answer
form of partnership where one or more partners are not active in the daily running of the business, and whose liability for the partnership's debt is restricted to the amount invested in the business
question
bankruptcy
answer
court-granted permission to an individual or business to cease or delay payment on some or all debts for a limited amount of time
question
charter
answer
written government approval to establish a corporation; includes company name, address, purpose of business, number of shares of stock, and other features of the business
question
stock
answer
certificate of ownership in a corporation; common or perferred stock
question
stockholder
answer
person who owns a share or shares of stock in a corporation; same as shareholders
question
shareholder
answer
stockholder
question
dividend
answer
check paid to stock holders, usually quarterly, representing portion of corporate profits
question
bond
answer
formal contract to repay borrowed money and interest on the borrowed
question
principle
answer
amount borrowed when getting a loan or issuing a bond
question
interest
answer
payment made for the use of borrowed money; usually paid at periodic intervals for long term bonds or loans
question
double taxation
answer
feature of taxation that allows stockholders' dividends to be taxed both as corporate profit and as personal income
question
merger
answer
combination of two or more business enterprises to form a single firm
question
income statement
answer
report showing a business's sales, expenses, and profits for a certain period, usually three months for a year
question
net income
answer
measure of business profits determined by subtracting all expenses, including taxes, from revenue
question
Cash flow
answer
total amount of new funds the business generates from operations; broadest measure of profits for a firm, includes both net income and non-cash charges
question
horizontal merger
answer
combination of two or more firms producing the same kind of product
question
vertical merger
answer
combination of firms involved in different steps of manufacturing and marketing
question
conglomerate
answer
firm with four or more businesses making unrelated products, with no single business responsible for a majority of its sales
question
multinational
answer
corporation producing and selling without regard to national boundaries and whose business activities are located in several different countries
question
nonprofit organization
answer
economic institution that operates like a business but doesn not seek financial gain ; schools, churches, community service organizations
question
cooperative
answer
nonprofit association performing some kind of economic activity for the benefit of its members
question
co-op
answer
cooperative
question
credit union
answer
nonprofit service cooperative that accepts deposits, makes loans, and provides other financial services
question
labor union
answer
organization that works for its members; interests concerning pay, work hours, health coverage, fringe benefits, and other job related matters
question
collective bargaining
answer
process of negotiation between union and management representatives over pay, benefits, and job related matters
question
professional association
answer
nonprofit organization of professional or specialized workers seeking to improve working conditions, skill levels, and public perceptions of its profession
question
chamber of commerce
answer
nonprofit organization of local business value whose purpose is to promote their interest
question
better business bureau
answer
business sponsored non profit organization providing information on local companies to consumers
question
public utility
answer
company providing essential services such as water and electricity to consumers, usually subject to some government regulations
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question
unlimited liability
answer
required that an owner is personally and fully responsible for all loss and debts
question
inventory
answer
stock of goods held in reserve; includes finished goods waiting to be sold and raw materials to be used in production
question
limited life
answer
situation in which a firm legally ceases to exist when an owner dies, quits, or a new owner is added; applies to sole proprietorships and partnerships
question
limited partnership
answer
form of partnership where one or more partners are not active in the daily running of the business, and whose liability for the partnership's debt is restricted to the amount invested in the business
question
bankruptcy
answer
court-granted permission to an individual or business to cease or delay payment on some or all debts for a limited amount of time
question
charter
answer
written government approval to establish a corporation; includes company name, address, purpose of business, number of shares of stock, and other features of the business
question
stock
answer
certificate of ownership in a corporation; common or perferred stock
question
stockholder
answer
person who owns a share or shares of stock in a corporation; same as shareholders
question
shareholder
answer
stockholder
question
dividend
answer
check paid to stock holders, usually quarterly, representing portion of corporate profits
question
bond
answer
formal contract to repay borrowed money and interest on the borrowed
question
principle
answer
amount borrowed when getting a loan or issuing a bond
question
interest
answer
payment made for the use of borrowed money; usually paid at periodic intervals for long term bonds or loans
question
double taxation
answer
feature of taxation that allows stockholders' dividends to be taxed both as corporate profit and as personal income
question
merger
answer
combination of two or more business enterprises to form a single firm
question
income statement
answer
report showing a business's sales, expenses, and profits for a certain period, usually three months for a year
question
net income
answer
measure of business profits determined by subtracting all expenses, including taxes, from revenue
question
Cash flow
answer
total amount of new funds the business generates from operations; broadest measure of profits for a firm, includes both net income and non-cash charges
question
horizontal merger
answer
combination of two or more firms producing the same kind of product
question
vertical merger
answer
combination of firms involved in different steps of manufacturing and marketing
question
conglomerate
answer
firm with four or more businesses making unrelated products, with no single business responsible for a majority of its sales
question
multinational
answer
corporation producing and selling without regard to national boundaries and whose business activities are located in several different countries
question
nonprofit organization
answer
economic institution that operates like a business but doesn not seek financial gain ; schools, churches, community service organizations
question
cooperative
answer
nonprofit association performing some kind of economic activity for the benefit of its members
question
co-op
answer
cooperative
question
credit union
answer
nonprofit service cooperative that accepts deposits, makes loans, and provides other financial services
question
labor union
answer
organization that works for its members; interests concerning pay, work hours, health coverage, fringe benefits, and other job related matters
question
collective bargaining
answer
process of negotiation between union and management representatives over pay, benefits, and job related matters
question
professional association
answer
nonprofit organization of professional or specialized workers seeking to improve working conditions, skill levels, and public perceptions of its profession
question
chamber of commerce
answer
nonprofit organization of local business value whose purpose is to promote their interest
question
better business bureau
answer
business sponsored non profit organization providing information on local companies to consumers
question
public utility
answer
company providing essential services such as water and electricity to consumers, usually subject to some government regulations
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