Chapter 3 Economics Business Organizations

court granted permission to people or business to cease or delay payment on some or all debts

feature of taxation that allows stockholderss' dividends to be taxed both as corporate profit

organization of workers formed to represent its members interests in various employment matters

nonprofit serive cooperative that accepts deposits, makes loans & provide financial services

merger → a combination of 2 or more businesses to form a single firm

non profit association performing some kind of economic activity for the benefit of its members

inbestor or municipal owned companies that offer important products to the publc

payment made for use of borrowed money, paid at periodic intervals for long-term bonds or loans

situation in which a firm legally ceases to exist when an owner dies, quits

if corp is profiting, check paid to stockholders, usually quarterly

promote the welfare of its members and its community

one partner not active in daily running of business, but contribute funds to business

total amount of new funds the business generates from operations

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

unincorporated business owned by two or more people who share the profits

certification of ownership in a corporation- $ used to set up corp

a report showing a business's sales, expenses & profits for a certain period

firm of at least 4 businessess each making unrelated products

a combination of 2 or more businessess to form a signle firm

requirement that a owner is personally & fully responsible for all losses & debts of a business

amount borrowed when getting a loan or issuing a bond

partnerships are bigger, better established, have a better chance of getting a bank loan

when a union participates in a negotiation with management over issues such as pay,

economic institution that operates like a business but does not seek financial gain

all partners share profits & have unlimited liability for the debts & obligations of the firm

measure of business profits determined by subtracting all expenses from revenue.

a group of people in a specialized occupation that works to improve the working conditions

when firms involved in different steps of manufacturing or marketing join together

unlimited liability → personal assets of stockholder, not at stake if corp defaults on  debts

same as shockholder

a written promise to repay an amount borrowed at a later date IOU (no ownership)

unincorporated business owned and run by a single person who has rights to all profits

When cash flows are reinvested in the business, the firm can produce additional products

non cash charge the firm takes for the general wear and tear on its capital goods

organization of workers formed to represent its members interests in various employment matters

form of business organization recongnized by law as a separate legal entity with all  rights

when 2 or more firms that produce the same kind of product join forces

sole proprietorship

business sponsored nonprofit organization providing information on local companies to consumers

stock of goods held in reserve 

a corporation that has manufacturing or service operations in a number of different countries

certification of ownership in a corporation- $ used to set up corp

written govt approval to est. a corporation states company name, address, purpose, stocks, etc.

person who owns a share or shares of stock in a corporation (same as shareholder)