Busn Vocab Quiz 4

Limited liability

when owners are not personally liable for claims against their firms.

C Corporation

the most common type of corporation which is a legal business entity that offers limited liability to all of its owners who are called stock holders.

Franchisee

the party in a franchise relationship that pays for the right to use resources supplied by the franchiser

Corporate social responsibility

business contributions to the community through the actions of the business itself rather than donations of money and time.

Divstiture

the transfer of total or partial ownership of some of a firms operations to investors or to another company.

Stakeholder

any groups that have a stake-or a personal interest-in the performance and actions of an organization.

Social audit

A formal review of a company's endeavors in social responsibility.

Sarbanes-Oxley Act

An act passed by U.S. Congress in 2002 to protect investors from the possibility of fraudulent accounting activities by corporations.

Individual responsibility

Moral responsibility is the status of morally deserving praise, blame, reward, or punishment for an act or omission, in accordance with one's moral obligations

Horizontal Acquisition

The acquisition of one company by another in the same industry.

Vertical acquisition

When a company expands its business into areas that are at different points on the same production path, such as when a manufacturer owns its supplier and/or distributor.

Sole proprietorship

a business that is owned and run by a single individual

Conglomerate merger

a combination of two firms that are unrelated industries.

Acquisition

a corporate restructuring in which one firm buys another.

Merger

a corporate restructuring that occurs when two formerly independent business entities combine to forma new organization

Not-for-profit corporation

a corporation that does not seek to earn a profit and differs in several fundamental respects from C corporations.

Statutory close corporation

a corporation with limited number of owners that operates under simpler, less formal rules than a C corporation.

Ethical Dilemma

a decision that involved a conflict of values

Franchise agreement

a detailed description of all aspects of a franchise that the franchisor must provide to the franchisee at lease fourteen calender days before the franchise agreement is signed.

Limited Liability Company (LLC)

a form of business ownership that offers both limited liability to its owners and flexible tax treatment

S Corporation

a form of corporation that avoids double taxation by having its income taxed as if it were a partnership

Limited liability partnership (LLP)

a form of partnership in which all partners have the right to participate in management and have limited liability for company debts.

Code of Ethics

a formal written document that defines the ethical standards of an organization and gives employees the information they need to make ethical decisions across a range of situations

Franchise

a licensing arrangement under which a franchisor allows franchisees to use its name, trademark, products, business methods, and other property in exchange for monetary payments and other considerations.

General partnership

a partnership in which all partners can take an active role in managing the business and have unlimited liability for any claims against the firm

Limited partnership

a partnership that includes at least one general partner who actively manages the company and accepts unlimited liability and one limited partner who gives up the right to actively manage the company in exchange for limited liability.

Consumerism

a social movement that focuses on the right to be safe, the right to be informed, the right to choose and the right to be heard.

Partnership

a voluntary agreement under which two or more people act as co-owners of a business for profit.

Corporate Philanthropy

all business donations to nonprofit groups, including money, products, and employee time.

Institutional investor

an organization that pools contributions from investors clients, or depositors and uses these funds to buy stocks and other securities.

Stockholder

an owner of a corporation

Green marketing

developing and promoting environmentally sounds prodcuts and practices to gain a competitive edge.

Sustainable development

doing business to meet the needs of the current generation without harming the ability of future generations to meet their needs.

Wistle-blowing

employees who report their employer's illegal or unethical behaviors either to authorities or the media.

Board of Directors

individuals who are elected by stockholders of a corporation to represent their interests. 

Franchise Disclosure Document (FFD)

is a legal document which is presented to prospective buyers of franchises in the pre-sale disclosure process in the United States.

Conflicts of interest

occurs when an individual or organization is involved in multiple interests, one of which could possibly corrupt the motivation.

Business Ethics

the application of right and wrong, good and bad, in a business setting.

Corporate bylaws

the basic rules governing how a corporation is organized and how it conducts its business 

Franchisor

the business entity in a franchise relationship that allows others to operate its business using resources it supplies in exchange for money and other considerations.