Suarez Test #2 Econ
Limited Life MM
a firm legally ceases to exist when an owner dies, quits, or a new owner is added
Principal MM
amount borrowed when getting a loan or issuing a bond
Proxy MM
ballot allowing a shareholder's representative to vote on corporate matters
Better Business Bureau MM
business sponsored non profit organization providing information on local companies to consumers
Stock MM
certificate of ownership in a corporation
Dividend MM
check paid to stockholders representing a portion of corporate profits
Vertical Merger MM
combination of firms involved in different steps of manufacturing or marketing
Horizontal Merger MM
combination of two or more firms producing the same kind of product
Public Utilities MM
company providing essential services such as water and electricity to consumers-usually subject to some government regulations
Dual Taxation MM
corporate profits taxed and stock holders dividends taxed
Multinational MM
corporations producing and selling in several different countries
Bankruptcy MM
court-granted permission to an individual or business to cease or delay payment on some or all debts for a limited amount of time
Nonprofit Organization MM
economic organization that operates like a business but does not seek financial gain
Incorporate MM
forming a corporation
LLC MM
limited liability company, limited liability, pass through income taxation, flexibility
LLP MM
limited liability partnership: all partners are limited partners, managed by partners, not responsible for others
Revenues MM
money coming in
Co-op MM
non profit association performing some kind of economic activity for the benefit of its members
Chamber of Commerce MM
non profit organization of local businesses whose purpose is to promote their interest
Preferred Stock MM
non voting, 1st dividends
Labor Union MM
organization that works for its members' interests concerning pay, working hours, and other job related issues
Interest MM
payment made for the use of borrowed money
Stockholders MM
person who owns shares of a corporation
Collective Bargaining MM
process of negotiation between union and management representatives over pay, benefits, and job related matters
Charter MM
process required to form a corporation, involves permission from the Federal Government or state where the business will have its headquarters
Fringe Benefits MM
received by employees in addition to wages and salaries
Board of Directors MM
representatives of common shareholders elected to set policies, goals and hire professional managers for a corporation
Unlimited Liability MM
requirement that an owner is personally and fully responsible for all losses and debts of a business
Inventory MM
stock of goods held in reserve, includes unsold finished goods and raw materials
C-Corporation MM
subject to dual taxation, taxed as income for shareholders, limited liability
Ethics MM
system of moral values or principles
Sole Proprietorship MM
unincorporated business owned and controlled by one person
Partnership MM
unincorporated business owned by two or more people
Common Stock MM
vote, last out
Conglomerate MM
firm with four or more businesses making unrelated products, with no single business responsible for a majority of its sales
Corporation MM
form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual
S-Corporation MM
shareholders report income (or loss) on income tax return, no more than 100 shareholders, shareholders must be uS citizens, does not pay corporate income tax
Limited Liability MM
extent of responsibility is usually restricted to the amount invested
Bond MM
formal contract to repay borrowed money and interest on the borrowed money at regular future intervals
Articles of Partnership MM
formal legal papers specifying the arrangements between parties, including the way profits an losses are divided
