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