Economics Chapter 8 Vocabulary

The legal document spelling out the details of a partnership agreement are called

articles of partnership

Money and other valuables belonging to an individual or business are called

assets

A license to form a corporation issued by a state government is called a

certificate of incorporation

A corporation that issues stock to only a few people, often family members is called a

closely held corporation

A business combination merging more than three businesses that take unrelated products is called

conglomerate

The business portion of corporate profits paid out of stockholders are called

dividends

A partnership in which partners share equally in both responsibility and liability is called a

general partnership

The combination of two or more firms competing in the same market with the same good or service is called a

horizontal merger

The legally bound obligation to pay debts is called

liability

A partnership in which all partners are limited partners is called a

limited liability partnership

A partnership in which only one partner is required to be a general partner is called a

limited partnership

A large corporation that produces and sells it goos and services throughout the world is called a

multinational corporation

An institution that functions much like a business, but does not operate for the purpose of generating profits is called a

nonprofit organization

A business organization owned by two or more persons who agree on a specific division of responsibilities is called a

partnership

A agricultural marketing cooperative that helps members sell their products is called a

producer cooperative

A corporation that sells stock on the open market is called a

publicly held corporation

A share of the earnings given as payment to a franchiser is called a

royalty

A cooperative that provides a service rather than a good is called a

service cooperative

A business owned and managed by a single individual is called a

sole proprietorship

A certificate of ownership in a corporation is called

stock

A uniform state law adopted by most states to establish rules for partnerships such as common ownership interests, profit and loss sharing, and shared management responsibilities is called

the Uniform Partnership Act

The combination of two or more firms involved in different stages of producing the same good or service is called a

vertical merger

A law in a city or town that designated areas for residency and for business is called a

zoning law

A payment other than wages or benefits is called

a fringe benefit

A formal contract to repay borrowed money with interest at fixed intervals is called a

bond

A semi-independent business that pays fees to a parent company in return for the exclusive right to sell a certain product or service in a given area is called a

business franchise

The authorization to start a business issued by the local government is called a(n)

business license

An establishment formed to carry on commercial enterprise is called a

business organization

A retail outlet owned and operated by consumers is called a

consumer cooperative

A business organization owned and operated by a group of individuals for their mutual benefit is called a

cooperative

A legal entity owned by individual stockholders is called a

corporation