Chapter 8 Economics Vocaulary

A ? occurs when one corporation buys most of another corporation's stock

firm

Stockholders have ? for a corporation

limited liability

A corporation has most of the same legal rights as a ?

person

Disadvantage of a franchise include limited ?, and high ? and ?

product, franchising, royalties

nonprofit organizations are more interested in ? than making money

providing a service

A franchise has the advantage of buying into a ?

sucessful business

Like Sole Proprietors, partners have ? for business debts

unlimited liability

The 3 main disadvantages of a Sole Proprietorship are ?, ? and a limited life

unlimited personal liability, limited capital

Conglomerate

A business combination merging more than 3 businesses that produced or services.

Cooperative

A business organization owned and operated by a group of individuals for their shared benefits.

Partnerships

A business organization owned by 2 or more persons who agree on a specific division of responsibility and liability.

Sole Proprietorship

A business owned and managed by a single.

A Sole Proprietorship is easy to ? and to ?

Start, End

Corporations can sell ? and ? to raise money

Stock, Franchise

Horizontal Merger

The combination of 2 or more firms competing in the same good or service.

Liability

The legal obligation to pay debts.

Assets

The money and other valuables belonging to an individual or business.

Dividend

The portion of corporate profits paid paid out to stockholders.

A Sole Proprietorship has ? owner

1

A partnership has ? or more owners

2

Vertical Merger

2 or more firms involved in different stages of producing then same good or services.

Stock

A certificate of ownership in a corporation.

Corporation

A legal entity, or being, owned by individual stockholders, each of whom has limited liability for the firm's debts.

A partnership combines the ? and ? of the partners

Assets, Skills

Business License

Authorization to operate a business issued by a local government.

Types of corporations include and corporations

Closely held, publicly held

Types or partnership include general, ?, and ? partnerships

Limited, Limited liability

? operate in more than one country

Multinational corporations

Fringe Benefits

Payments to employees other than wages or salary.

A franchise is an agreement between a ? and A ?

Person, Parent Company

The owner of a Sole proprietorship does not have to share ? or ? of the business

Profits, Control