ch 3 econ

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  1. sole proprietorship
    business owned & run by 1 person
  2. unlimited liability:
    where the owner is responsible for ALL losses/debts of business
  3. inventory
    stock of finished goods & aprts in reserve
  4. limited life
    where a firm ceases to exist when owner dies, sells business, or quit
  5. partnership
    business jointly owned by 2 or more people
  6. limited partnership
    at least 1 partner isn't active in the dialry unning of business although hee/she mayhave contributed funds to finance the operation
  7. merger
    combination of 2 or more businesses to form a single firm
  8. income statement
    report showing a business's sales, expenses and profits for a certain period
  9. net income
    measure of business profits determined by subtracting all expenses from revenues
  10. depreciation
    noncash charge the firm takes for general wear/tear on its capital goods
  11. cash flow
    sum of net income and noncash charges
  12. horizonatl merger
    when 2 or more firms that produce the firm ind of product joins forces
  13. vertical merger
    when firms in diff steps of manufacturing or marketing join together
  14. congloerate
    firm that has at least 4 businesses
  15. multinational
    corporation that has manufacturing or service in different countries
  16. nonprofit organization
    operates in businesslike way to promote collective interests of its members rather than to seek financial gain for its owners
  17. cooperative/co-op
    voluntary association of people formed to carry on some kind of economic activity that will benefit its members
  18. credit union
    financial organization that accepts deposits from & makes loas to employees of a compnay or gvmt agency
  19. labor
    orgnization of workers formed to represent members interests in employment matters
  20. collective bargaining
    negotiating with management over issues (pay working hrs)
  21. professional association
    group of people in occupation that works to improve working conditions, skill levels, & public perception of occupation
  22. chamber of commerce
    promotes welfare of its members & community for cities and towns
  23. better business bureau
    nonprofit organization sponsored by local businesses to provide general info on companies
  24. public utility
    investor owned companies that officer important products to the public
Card Set
ch 3 econ
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