Question 1

business organization

Accepted Answer

an establishment formed to carry on commercial enterprise. It is profit motivated.

Question 2

sole proprietorship

Accepted Answer

a business owned and managed by a single individual.

Question 3

business license

Accepted Answer

authorization to start a business issued by the local government.

Question 4

zoning law

Accepted Answer

law in a city or town that designates separate areas for residency and for business.

Question 5

liability

Accepted Answer

a legal obligation to pay money to another party.

Question 6

fringe benefit

Accepted Answer

payment other than wages or salaries which could include sick pay, paid vacation.

Question 7

partnership

Accepted Answer

a business organization owned by two or more persons who agree on a specific division of responsibilities and profits

Question 8

general partnership

Accepted Answer

partnership in which partners share equally in both responsibility and liability

Question 9

limited partnership

Accepted Answer

partnership in which only one partner is required to be a general partner

Question 10

limited liability partnership

Accepted Answer

a type of partnership in which all partners are limited partners

Question 11

articles of partnership

Accepted Answer

a partnership agreement

Question 12

uniform partnership act

Accepted Answer

act ordering common ownership interests, profit and loss sharing, and shared management responsibilities in a partnership

Question 13

assets

Accepted Answer

money and other valuables belonging to an individual or business

Question 14

corporation

Accepted Answer

a business owned by stockholders who share in its profits but are not personally responsible for its debts

Question 15

stock

Accepted Answer

a certificate documenting the shareholder's ownership in the corporation

Question 16

closely held corporation

Accepted Answer

corporation that issues stock to only a few people, often family members

Question 17

publicly held corporation

Accepted Answer

a type of corporation that sells stock on the open market., corporation whose stock is widely held and available for sale to the general public.

Question 18

bond

Accepted Answer

a certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money.

Question 19

certificate of incorporation

Accepted Answer

a license to form a corporation issued by a state government.

Question 20

dividend

Accepted Answer

the portion of corporate profits paid out to stockholders.

Question 21

horizontal merger

Accepted Answer

the combination of two or more firms competing in the same market with the same good or service

Question 22

vertical merger

Accepted Answer

the combination of two or more firms involved in different stages of producing the same good or service.

Question 23

conglomerate

Accepted Answer

Business combination merging more than three businesses that make unrelated products.

Question 24

multinational corporation

Accepted Answer

large corporation that produces and sells its goods and services throughout the world.

Question 25

business franchise

Accepted Answer

a semi-independent business that pays fees to a parent company in return for the exclusive right to sell a certain product or service in a given area.

Question 26

royalty

Accepted Answer

share of earnings given as payment.

Question 27

cooperative

Accepted Answer

a business organization owned and operated by a group of individuals for their mutual benefit.

Question 28

consumer cooperative

Accepted Answer

Retail outlet owned and operated by consumers

Question 29

service cooperative

Accepted Answer

cooperative that provides a service rather than a good.

Question 30

producer cooperative

Accepted Answer

an agricultural marketing cooperative that helps members sell their products.

Question 31

nonprofit organization

Accepted Answer

Institution that functions much like a business, but does not operate for the purpose of generating profits.

Question 32

professional organization

Accepted Answer

a nonprofit organization that works to improve the image, working conditions, and skill levels of people in particular occupations.

Question 33

business association

Accepted Answer

nonprofit organization that promotes collective business interests for a city, state, or other geographical area, or for a group of similar businesses.

Question 34

trade association

Accepted Answer

nonprofit organization that promotes the interests of a particular industry

Question 35

absolute advantage

Accepted Answer

the ability of an individual, a firm, or a country to produce more of a good or service than competitors, using the same amount of resources

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