Vocab – Chapter 3: Business Organizations – Flashcards
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Bankruptcy
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court-granted permission to an individual or business to cease or delay payment on some or all debts
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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 and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, sue and be sued
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Charter
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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
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Stock
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certificate of ownership in a corporation; common or preferred ____
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Stockholder
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a person who owns a share or shares of stock in a corporation; same as shareholders
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Dividend
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check paid to stock holders, usually quarterly, representing portion of corporate profits
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Bond
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formal contract to repay borrowed money and interest on the borrowed money at regular future intervals
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Principal
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amount borrowed when getting a loan or issuing a bond
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Interest
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payment made for the use of borrowed money; usually paid at periodic intervals for long-term bonds or loans
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Double Taxation
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feature of taxation that allows stockholders' dividends to be taxed both as corporate profit and personal income
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Merger
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combination of two or more business enterprises to form a single firm
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Income Statement
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report showing a business's sales, expenses, and profits for a certain period, usually three months or a year
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Net Income
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measure of business profits determined by subtracting all expenses, including taxes, from revenues
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Depreciation
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gradual wear on capital goods during production
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Cash Flow
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total amount of new funds the business generates from operations; broadest measure of profits for a firm, includes both not income and non-cash charges
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Horizontal Merger
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combination of two or more firms producing the same kind of product
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Vertical Merger
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combination of firms involved in different steps of manufacturing or marketing
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Conglomerate
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firm with four or more businesses making unrelated products, with no single business responsible for a majority of its sales
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Multinational
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corporation producing and selling without regard to national boundaries and whose business activities are located in several different countries
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Nonprofit Organization
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economic institution that operates like a business but does not seek financial gain; schools, churches, community service organizations
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Cooperative
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nonprofit association performing some kind of economic activity for the benefit of its members
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Credit Union
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nonprofit service cooperative that accepts deposits, makes loans, and provides other financial services
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Labor Union
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organization that works for its members' interests concerning pay, working hours, health coverage, fringe benefits, and other job related matters
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Collective Bargaining
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process of negotiation between union and management representatives over pay, benefits, and job-related matters
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Professional Association
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nonprofit organization of professional or specialized workers seeking to improve working conditions, skill levels, and public perceptions of its profession
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Chamber of Commerce
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nonprofit organization of local business whose purpose is to promote their interests
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Better Business Bureau
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business-sponsored nonprofit organization providing information on local companies to consumers
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Public Utility
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company providing essential servces such as water and electricity to consumers, usually subject to some government regulations
