Economics - Unit 2 Part 2 Vocabulary REVIEW

Question 1

business is unable to meet financial obligations, the owner of the business is personally responsible to pay those debts

Accepted Answer

unlimited liability

Question 2

business closing or reorganizing a business under the new owner(s) when the previous owner(s) leave the business

Accepted Answer

limited life

Question 3

obstacles to competition that prevent others from entering a market

Accepted Answer

barriers to entry

Question 4

market structure characterized by a large number of buyer and sellers of an identical product

Accepted Answer

pure (perfect) competition

Question 5

feature of taxation that allows stockholders' dividends to be taxed both as corporate profit and as personal income

Accepted Answer

double taxation

Question 6

the business passes to new owners through the sale of shares without ending the business

Accepted Answer

unlimited life

Question 7

how many firms are in the market

Accepted Answer

number of sellers

Question 8

responsibility for paying the debts of the business

Accepted Answer

liability

Question 9

responsibility for the businesses debts are restricted to the ownership stake (shares of stock) the business owner owns

Accepted Answer

limited liability

Question 10

market structure characterized by only one seller of a product dominating the market

Accepted Answer

monopoly

Question 11

determines how competitive the market will be

Accepted Answer

price control

Question 12

firms legally owned by stockholders that purchased shares of company in hope of value of their shares increase over-time

Accepted Answer

corporations

Question 13

firms legally owned by two or more people

Accepted Answer

partnerships

Question 14

taxes on the profits of the business

Accepted Answer

taxation

Question 15

firms legally owned by only one person

Accepted Answer

sole proprietorships

Question 16

the entity responsible for the day-to-day operating decisions of the business

Accepted Answer

decision-making

Question 17

money payments distributing some of a firm's profit to shareholders on a quarterly basis

Accepted Answer

dividends

Question 18

real or imagined differences between competing products in the same industry

Accepted Answer

product differentiation

Question 19

market structure characterized by only a few sellers of a product who dominate the market

Accepted Answer

oligopoly

Question 20

what happens to the business when an owner leaves or dies

Accepted Answer

lifespan

Question 21

market structure characterized by a large number of buyers & sellers of products that are similar to one another

Accepted Answer

monopolistic competition

Questions 21