An establishment formed to carry on commercial enterprise.
What is a business organization.
100
A business organization owned by two or more persons who agree on a specific division of responsibilities and profits.
What is a Partnership.
100
This is the most complex form of a business organization.
What is a corporation.
100
The combination of two or more firms competing in the same market with the same good or service.
What is horizontal merger.
100
A semi-independent business that pays fees to a parent company in return for the exclusive right to sell a certain product or service in a given area.
What is a business franchise.
200
About 75% of all businesses are this type.
What are Sole Proprietorships.
200
Partnerships are subject to few government regulations. Advantages include: Shared Decision Making and Specialization, Larger Pool of Capital, Limited Taxation, and...
What is Ease of Start-up.
200
Representing their portion of ownership in the corporation, Stockholders own stock, also called:
What are shares.
200
The combination of two or more firms involved in different stages of producing the same good or service, thus allowing a firm to opperate more efficiently is called...
What is vertical merger.
200
Franchisers often charge high fees for the right to use the company name. They also charge franchise owners a share of the earnings, or...
What are royalties.
300
Sole Proprietors must obtain authorization from the local government, or this document, to start a new business.
What is a business license.
300
This legal document outlines how partners will share profits or losses, as well as, spells out each partner's rights and responsibilities.
What is articles of partnership.
300
This type of corporation issues stock to only a few people, often family members.
What is closely held corporation.
300
Sometimes firms buy other companies that produce totally unrelated goods or services. These combinations with generally more than three businesses producing unrelated products are referred to as:
What are conglomerates.
300
A business organization owned and operated by a group of individuals for their mutual benefit is called:
What is a Cooperative.
400
The biggest disadvantage of Sole Proprietorship is the following:
What is Unlimited Personal Liability.
400
Money and other valuables belonging to an individual or business is referred to as:
What are assets.
400
Corporations can raise money. They do this by selling a certificate issued by the corporation, which promises to repay with interest the amount it borrowed from the buyer. This certificate is called:
What is a bond.
400
Large corporations that produce and sell its goods and services throughout the world are referred to as:
What are Multinational Corporations.
400
An institution that functions much like a business, but does not opperate in order to generate profits is called the following:
What is a nonprofit organization.
500
Payments to employees other than wages or salaries, such as paid vacation, retirement pay, and health insurance.
What is fringe benefits.
500
Limited partners do not face the same threat as general partners if a firm fails. Limited partners have the following at risk:
What is their investment.
500
Disadvantages of Incorporation include: expense and difficulty of start-up, potential loss of control by the founders, more legal requirements and regulations, and...
What is Double Taxation.
500
Multinationals benefit consumers and workers worldwide by providing jobs and products around the world. Often the jobs they provide help poorer nations gain...
What are better living standards for their people.
500
A group of workers whose aim is to improve working conditions, hours, wages, and fringe benefits.