Economics Chapter 8
Inventory
Extra supply of items used in a business.
Joint venture
Two businesses work together for a specific purpose just for a short period of time.
Corporation
Type of business owned by many people, but treated by law as a single person.
The state where the corporation is established
A corporate charter is granted by
It is taxed heavily.
A disadvantage of a corporation is that
Assets
All items to which a business holds legal claim.
not having to pay for advertising.
An advantage of franchising is
Startup
Beginning business enterprise.
Franchise
Contract in which one business sells to another business the right to use its name and sell its products.
Sole proprietorship
Business owner and operated by one person.
Partnership
Business that two or more individual own and operate.
Stock
Share of ownership in a corporation.
Small business incubator
Government-funded agency that assists new business.
A certain amount of dividend each year.
Holder of preferred stock are guaranteed
Only contribute dubs or property to the business.
In a limited partnership, the limited partners
Share the profits or losses.
In a partnership the partners
Reduces profits.
In the startup phase of a business, advertising
Receipts
Income received from the sale of goods and/or services.
The proprietorship has unlimited liability.
The biggest disadvantage of a sole proprietorship is that
Entrepreneur
Person who organizes, manages, and assumes the risks of a business in order to gain profits.
Dividend
Portion of a corporation's profits paid to its stockholders.
To any business to be successful.
Record keeping is necessary
Limited liability
Requirement in which an owner's responsibility for business debt is limited to the size of the owner's investment in the business.
Unlimited liability
Requirement that an owner is personally and fully responsible for all losses and debts of a business.
Limited liability company
The business enterprise that is taxed like a partnership is a
sole proprietorship.
The most basic type of business organization is a
Corporation.
The most important type of business organization in the United States today in terms of the amount of business done is the
Subtract total expenses from receipts.
To determine whether a business made a profits, you must ?
Expenses
To which element of business operation does the saying, "You have to spend money to make money" refer ?
Equal to what you could earn elsewhere.
When you run a business, you should pay yourself a wage that is