Economics Ch. 8

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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


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