Economy: Chapter 8 – Flashcards
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If a general partnership fails, who is responsible for the debts? anyone who works for the partnership all the partners only the most senior general partner no one
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all the partners
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In the United States, the type of corporation that makes up the largest percentage of all business enterprises is ____________ . mining services manufacturing finance
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manufacturing
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What is a fringe benefit? a cash payment for casual work a business other than sales or marketing a payment other than wages or salaries an accounting term meaning profits
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a payment other than wages or salaries
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A business owned and managed by a single individual: cooperative corporation trade association partnership sole proprietorship
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sole proprietorship
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The portion of corporate profits paid out to stockholders: liability dividend bond stamp stock Stockholm stamp
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dividend
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The legally bound obligation to pay debts: note of stockhold dividend note of Stockholm liability stock and bondhold
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liability
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What percentage of U.S. businesses are sole proprietorships? 35% 50% 75% 90%
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75%
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A business organization owned and operated by a group of individuals for their mutual benefit: cooperative corporation trade association limited partnership sole proprietorship
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cooperative
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Why is it easier for a partnership to borrow money and to hold good employees than it is for a sole proprietorship to do so? The more limited access to a partner's personal funds make the business more careful. The large number of partners makes it more likely that the business will be a success. The larger number of partners means that people are easier to get along with. A partnership has more personal stability and access to more money.
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A partnership has more personal stability and access to more money.
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An institution that functions like a business but does not operate to generate profits: nonprofit organization Stockholm Club stockholder enterprise cooperative franchise Pineapple Ring
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nonprofit organization
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A certificate issued by a corporation promising to repay a loan with interest to the buyer: bond franchise article of incorporation Stockholm note note of stockhold
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bond
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The joining of two or more firms competing in the same market with the same good or service: Stockholm enterprise partnership vertical merger horizontal merger Pineapple Ring
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horizontal merger
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Nonprofit association that promotes the interests of a particular industry: cooperative corporation trade association limited partnership sole proprietorship
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trade association
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The money and other valuables that belong to a corporation or partnership: liabilities assets ownership liens
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assets
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A legal entity owned by individual stockholders: cooperative corporation trade association limited partnership sole proprietorship
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corporation
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Authorization to start a business issued by the local government: license dividend liability stock bill of attainer
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license
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A share representing a portion of ownership in a corporation: liability dividend note of Stockholm stock bond
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stock
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What are royalties? fees paid to celebrities for using their names fees paid to law firms and accountants a percentage of profits paid to the government a percentage of earnings paid for a franchise
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a percentage of earnings paid for a franchise
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An organization owned by two or more persons in which only one person has unlimited personal liability for the business: cooperative corporation trade association limited partnership sole proprietorship
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limited partnership
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Regulation in a city or town that designates separate areas for residency and business: commerce zone boundaries business franchise zoning law Stockholm boundaries business license
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zoning law
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In the United States, what percentage of businesses are sole proprietorships? 10% 25% 50% 75%
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75%
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Which represents the percentage of all U.S. businesses that are corporations, and the percentage of all goods that those corporations sell? 10% of businesses; 50% of goods sold 20% of businesses; 50% of goods sold 20% of businesses; 90% of goods sold 50% of businesses; 75% of goods sold
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20% of businesses; 90% of goods sold
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What is the major difference between a corporation and other kinds of businesses? A corporation is a separate entity apart from that of the owners. A corporation is not responsible for its debts if it fails. A corporation is much larger than other kinds of businesses. A corporation has officers who are responsible for the business.
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A corporation is a separate entity apart from that of the owners.
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A business organization owned by a group of people for their mutual benefit: a cooperative a labor union a limited liability partnership a professional organization
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a cooperative
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A joining of two or more businesses that are involved in different stages of producing the same good or service: vertical merger horizontal merger cooperative conglomerate
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vertical merger
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Which is an advantage of a sole proprietorship? No one is responsible if it fails. It is the least-regulated form of business organization. It is an easy way to make a lot of money. It is easy to get financing to start one.
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It is the least-regulated form of business organization.
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Which is a disadvantage of a sole proprietorship? lack of permanence high taxes legal constraints difficult to start up
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lack of permanence
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Institution that is established to benefit society and is operated like a business: trade association nonprofit organization producer cooperative limited partnership
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nonprofit organization
