Business Ownership
Q: What type of business is owned by one person and is the most common type of business organization?
A: What is a sole proprietorship?
Q: Who risks time, money, and effort to start and run a business?
A: What is an entrepreneur?
Q: What are systems where savers exchange money with borrowers and investors?
A: What are financial markets?
Q: What type of stock gives shareholders voting rights in corporate decisions?
A: What is common stock?
Q: What financial statement summarizes a company’s revenues and expenses over a period of time?
A: What is an income statement?
Q: What type of business organization is owned by two or more people who share profits and responsibilities?
A: What is a partnership?
Q: What group of individuals elected by stockholders manages a corporation?
A: What is the board of directors?
Q: What long-term IOU issued by a business or government represents borrowed money?
A: What is a bond?
Q: What type of stock pays dividends first but often does not include voting rights?
A: What is preferred stock?
Q: What financial statement shows what a business owns and what it owes at a specific time?
A: What is a balance sheet?
Q: What form of business organization is treated by courts as a separate legal person from its owners?
A: What is a corporation?
Q: What is a share of ownership in a corporation called?
A: What is stock?
Q: What type of credit allows a business to receive inventory now and pay the supplier later?
A: What is trade credit?
Q: What is the market where new shares of stock are sold to investors for the first time?
A: What is the primary market (IPO)?
Q: What are payments made by corporations to shareholders from profits called?
A: What are dividends?
Q: What type of business allows an individual to operate as part of a larger chain using its name and business model?
A: What is a franchise?
Q: What document describes the nature of a corporation, its stock, and its initial owners?
A: What is a charter?
Q: What term refers to ownership in a company through stock?
A: What is equity?
Q: What is the market where previously issued shares are bought and sold between investors?
A: What is the secondary market?
Q: What are profits a business keeps and reinvests instead of distributing to stockholders?
A: What are retained earnings?
Q: What type of business organization exists to serve educational, charitable, religious, or social purposes rather than to make profits?
A: What is a not-for-profit organization?
Q: What concept means that owners of a corporation cannot lose more than the amount they invested?
A: What is limited liability?
Q: What type of investment spreads money across many stocks or securities?
A: What is a mutual fund?
Q: What is it called when stock prices rise for months or years?
A: What is a bull market?
Q: What accounting formula describes the relationship between assets, liabilities, and net worth?
A: What is Assets − Liabilities = Net Worth?