Economics Ch. 8
what percentage of the net income earned in the united states is generate by corportations
60 percent
limited liability partnership (LLP)
a business in which all partners are protected from personal liability in certain situations
general partnership
a business in which all partners share in both responsibility and liability
limited partnership
a business in which one partner has unlimited personal liability for the company's actions
sole proprietorship
a business owned and managed by a single individual
business franchise
a business that pays fees to a parent company
articles of partnership
a legal agreement that sets out each partner's rights and responsibilities in a partnership
corporation
a legal entity owned by stockholders
what is a certificate of incorporation
a license to form a corporation issued by the state government
business license
an authorization from the local government to carry on an enterprise
stock
certificate representing ownership in a company
conglomerate
combination of more than three businesses that produce unrelated goods and services
bond
contract issues by a corporation promising to repay the amount it has borrowed
which of the following statements is true about vertical mergers
firms are involved in different stages of producing the same good or service
the most common type of partnership is the
general partnership
which of the following statements about partnerships is true
in a limited liability partnerships, all partners have some limitations from liability
assets
money and other valuables
if a sole proprietorship fails, the owner of the business
must pay all the business debts
fringe benefits
payments to employees other than wages or salaries
dividend
portion of corporate profits paid to stockholders
zoning laws
regulations cities and towns use to designate separate areas for business
horizontal merger
the joining of two or more firms competing in the same industry with the same good or service
liability
the legal obligation to pay debts
a major advantage of a sole proprietorship is that
the owner has full authority over business decisions
business organization
the ownership structure of a company
a major advantage of a franchise is that
the parent company provides guidance on running the business
what major advantage does a partnership have over a sole proprietorship
the responsibility for the business is shared
a major disadvantage of the sole proprietorship is that
the sole proprietor may have problems borrowing money from a bank
what does limited liability of the owners of stock in a corporation mean
the stockholders can lose only the money they have invested
which of the following is true of sole proprietorships
they are owned and managed by an individual