Exam 1 Key Terms (BUS-W 100)

A partner who does not participate in the management of the business and whose liability is limited to their investment

A nation's negative balance of trade, which exists when that country imports more products than it exports.

A prohibition on trade in a particular product.

An economic system in which individuals own and operate the majority of businesses that provide goods and services.

A partnership that involves a complete sharing in both the management and the liability of the business.

The combination of two companies to form a new company.

The physical facilities that support a country's economic activities.

The difference between what it costs to make and sell a product and what a customer pays for it.

Selling a corporation's stock on public markets for the first time.

Organizations that do not have the fundamental purpose of earning a profit.

An association of two or more persons who carry on as co-owners of a business for profit

A strategy that involves standardizing products for the whole world, as if it were a single entity.

The purchase of goods and services from foreign sources.

Economies made up of elements from more than one economic system.

A corporation taxed as though it were a partnership with restrictions on shareholders.

Stock whose owners have voting rights in the corporation, yet do not receive preferential treatment regarding dividends.

A plan that involves customizing products, promotion, and distribution according to national/regional differences.

A monopoly that exists when a country is the only source or most efficient producer of an item.

Legal documents that set forth the basic agreement between partners.

The sum of all goods and services produced in a country during a year.

The purchase of one company by another, usually by buying its stock.

A corporation whose stock anyone may buy, sell, or trade.

Groups that have a stake in the success and outcomes of a business.

When a country specializes in products that it can supply more efficiently or at a lower cost than it can produce others

A tax levied by a nation on goods imported into the country.

Principles and standards that determine acceptable conduct in business.

Payments, gifts, or special favors intended to influence the outcome of a decision.

The condition in which a nation spends more than it takes in from taxes.

Business owned and operated by one individual; the most common form of business organization in the U.S.

A business's obligation to maximize its positive impact and minimize its negative impact on society.

The relocation of business processes to another country; the company retains control of the process.

A restriction on the number of units of a particular product that can be imported into a country.

Form of ownership that provides limited liability & taxation like a partnership but places fewer restrictions on members

A legal entity, created by the state, whose assets and liabilities are separate from its owners.

A corporation owned by just one or a few people who are closely involved in managing the business.

The transferring of manufacturing or other tasks to countries where labor and supplies are less expensive.

A group of individuals elected by the stockholders to oversee the general operations of the corporation.

An economic system in which the government owns and operates basic industries but individuals own most businesses.

Formalized rules and standards that describe what a company expects of its employees.

The market structure that exists when there is only one business providing a products in a given market.

A society in which the people (through the government), without regard to class, own all the nations resources.

The sale of goods and services to foreign markets.

Conducting activities in a way that allows for the long-term well-being of the natural environment.