Chapter 8 Economics

Report showing a business's sales, expenses, and profits for a certain period of time.

Certificate of ownership in a corporation, can be either common or preferred

A car manufacturing company & a tire company for example.

Firm of 4 or more businesses making unrelated products with no single business responsible for majority of sales.

Person that invests in the business model of the franchisor with his/her own money.

Stock paid to shareholders representing a portion of corporate profits.

Allows stockholders dividends to be taxed both as corporate profit & personal income.

Business-sponsored nonprofit organization providing information on local companies to consumers.

Provider of investment funds to start-up businesses in exchange for partial ownership of business.

Partnership where one or more partners are NOT active in the daily running of the business & liability is limited.

Places where entrepreneurs can receive training & assistance to successfully start a business.

Informal and usually affluent investors who provide funds to less-promising start-ups.

Business organization recognized by law as a separate legal entity with rights & responsibilities.

Stock of goods held in reserve; includes finished & raw goods.

Combination of firms producing the same kind of products

Formal contract to repay borrowed money & interest at regular future intervals.

A corporation, not owners, is responsible for all losses & debts.

Creator and owner of the business model that is rented or leased by investors.

Business investment that involves renting or leasing another successful business model.

Coach and Kate Spade merger for example.

Corporation producing and selling without regard to national boundaries with businesses in multiple countries.

Firm legally ceases to exist when owner dies or quits, or when new owner is added.

Total amount of new funds generated from operations; includes both net income and non-cash charges.

Crowdfunding is using social networking to appeal to potential investors.

Nonprofit organization of local businesses whose purpose is to promote their interests.

An owner is personally & fully responsible for all losses & debts.

Form of stock with no voting privileges

Written government approval to establish a corporation, includes company name, address, purpose of business, etc.

Process of negotiation between union and management reps over pay, benefits, etc.

Nonprofit association performing some kind of economic activity for the benefit of its members.

Most basic form of corporate ownership, generally with one vote per share for stockholders.

Measure of a business's profits determined by subtracting expenses, including taxes, from revenues.

Organization that works for its members' interests concerning pay, working hours, health coverage, etc.

Payment made for the use of borrowed money.

Gradual wear on capital goods.

Unincorporated business owned and run by a single person who has rights to all profits & unlimited liability for debts.

Business owned and operated by 2 or more people who share profits & have unlimited liability.

Partnership where all partners are jointly responsible for management & debts.

Combination of firms involved in different steps of manufacturing, marketing, and sales.

Nonprofit service co-op that accepts deposits, makes loans, etc.

Amount borrowed when getting a loan or issuing a bond.