Business Organizations
The most common form of business organization.
What is the sole proprietorship?
If one owner leaves or dies, this will dissolve.
What is a partnership?
A formal long term contract requiring repayment of borrowed money and interest on it.
What is a bond?
F for Ford Motor Company, KKD for Krispy Kreme Doughnuts, and XOM for Exxon Mobil are examples of these.
What are stock symbols?
Investors buy stock, hoping the price will go up, from people who expect it to do this.
What is have the price go down?
It can buy or sell property, sue or be sued, and enter into contracts.
What is a corporation?
The simplest business organization to form is this.
What is the sole proprietorship?
Investors demand higher returns when their exposure to this goes up.
What is risk?
Investors purchasing stocks may seek advice from one of these.
What is a stockbroker?
A strong market with values moving up for several months.
What is a bull market?
All owners in this are responsible for the management and financial obligations of the firm.
What is a general partnership?
Ease of transferring ownership and limited liability for owners are two advantages with this form.
What is a corporation?
This activity encourages economic growth because it makes funds available for financial institutions to make loans.
What is saving?
The two popular indicators are the Dow Jones and this.
What is the Standard and Poor's 500?
The most popular place for U.S. buyers and sellers to meet and exchange stocks.
What is the New York Stock Exchange?
Two forms of business organization that are not separate legal entities.
What are the sole proprietorship and the partnership?
Sole proprietorships often struggle to raise this.
What is capital?
Both of these entities use bonds to borrow money for long terms.
What are businesses and governments?
A popular strategy for the wise investor; it requires research into many different investments.
What is diversification?
Stock values fall for several months in this market.
What is a bear market?
Some owners have complete responsibility, but others are not active in management and have only limited liability.
What is a limited partnership?
Corporate dividends are subject to this twice -- once when the business earns the profits originally and again when the business pays a dividend to shareholders.
What is tax -- double taxation?
The circular flow of finance moves money from savers to borrowers; these are the documentation of the transactions.
What are financial assets?
This ratio is an important factor in evaluating stocks.
What is the price-earnings ratio?
This tax-deferred investment and savings plan acts as a personal pension fund for employees.
What is a 401(k)?