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