PB Chapter 4 Vocab
Liability
Legal responsibility
Consumer market
customers who buy products for their own use.
Business market
customers who buy products for use in a business.
Limited liability company (LLC)
form of business ownership that combines the benefits of a corporation with those of proprietorships and partnerships.
Not-for-profit
organization that exists to serve some public purpose.
For-profit business
organization that generates revenue.
Intermediaries
people and businesses that sell the goods and services from producers to customers.
Dividend
portion of the corporation's earnings distributed to stockholders.
North American Industry Classification System (NAICS)
a numeric system used to classify businesses and collect economic statistics.
Stock
a share of ownership in a corporation.
Proprietorship
business that is owned and often operated by a single individual.
Extractors
businesses or people that take natural resources from the land.
Retailers
businesses that buy products from wholesalers or directly from producers, and sell them to consumers to make a profit.
Manufacturers
businesses that use supplies from other producers to make products.
Service business
earns profits by providing consumers with services that meet their needs and wants.
Partnership agreement
A written contract that establishes a partnership.
Partnership
Association of two or more persons who co-own a business with the objective of earning profit.
Corporation
Business that is legally separated from its owners and has most of the legal rights of an actual person.
Cooperative
Business that is owned and operated by those using its services
Wholesaler
Business that purchases large quantities of products directly from producers and sells the products in smaller quantities to retailers
Producer
Businesses that create goods and services.
Business-to-consumer(B2C)
Businesses that sell primarily to individual consumers
Board of Directors
Group of individuals who make high-level management decisions for the business and establish company policies
Government market
includes national, state, and local government offices and agencies.
Institutions
nonprofit organizations that may be either public or private.
