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Ch. 3 sec. 1 vocab
Ch. 3 sec. 2 & 3 vocab
Chapter 6 vocabulary
Ch. 3 Questions
Ch. 6 Questions
100
a business owned by a single individual
What is a sole proprietorship?
100
a combination of two or more businesses to form a single firm
What is a merger?
100
monetary value of a product as established by supply and demand
What is price?
100
the most common form of business organization in the US?
What is a sole proprietorship?
100
in a competitive market, the adjustment process moves toward...
market equilibrium
200
a business that is jointly owned by two or more persons
What is a partnership?
200
the sum of net income and noncash charges
What is cash flow?
200
a system of allocating good and services without prices
What is rationing?
200
name the two types of mergers
horizontal and vertical mergers
200
if there is a shortage in a market, the price is likely to...
go up
300
a government document that gives permission to create a corporation
What is a charter?
300
economic organization that operates like a business but does not seek financial gain
What is a nonprofit organization?
300
maximum legal price that can be charged for a product
What is price ceiling?
300
a voluntary association that buys bulk amounts of goods on behalf of its members
What is a cooperative/co-op?
300
if there is a surplus in a market, the price is likely to...
go down
400
a written promise to repay the amount borrowed at a later date
What is a bond?
400
a firm that has at least four businesses, each making unrelated products, with no single business responsible for the majority of its sales
What is a conglomerate?
400
a loan that carries neither a penalty nor further obligation to repay if not paid back
What is a nonrecourse loan?
400
a major reason for conglomerate mergers
What is diversification?
400
who does the price system favor?
no one; it is neutral
500
Taxation of dividends both as corporate profit and as personal income
What is double taxation?
500
nonprofit service cooperative that accepts deposits, makes loans, and provides other financial services
What is a credit union?
500
a cash payment making up the difference between the market price and target price
What is deficiency payment?
500
what kind of corporation is known for their ability to move resources, products, and financial capital across national boarders with ease?
multinational
500
name three problems with rationing
1) everyone feels that his/her share is too small, 2) cost of administration, 3) no incentive to produce