Business Organizations Quiz

Business Organizations

• Establishments formed to conduct commercial enterprises.

Sole Proprietorship

• A business owned and managed by a single individual, allowing full control and profit retention.

Business License

• Authorization issued by local government to start and operate a business.

Zoning Law

• Regulations that allocate specific areas for residential or business use within cities or towns.

Liability

• Legal obligations to pay off debts incurred by the business.

Fringe Benefit

• Additional benefits provided to employees beyond wages, such as health insurance, paid leave, and retirement plans.

Partnership

• A business arrangement owned by two or more individuals sharing responsibilities and profits.

General Partnership

• Partners equally share responsibility and liability for business debts.

Limited Partnership

• Structure where at least one partner has unlimited liability, while others have limited roles.

Limited Liability Partnership (LLP)

• All partners have limited liability, protecting them from debts and liabilities of other partners.

Articles of Partnership

• Formal agreement documenting the terms and conditions of a partnership.

Uniform Partnership Act (UPA)

• Legislation that standardizes the rules governing partnerships, including management and profit sharing.

Assets

• Financial resources and valuables owned by an individual or business.

Corporation

• A legal entity distinct from its owners, represented through individual stockholders.

Stock

• A certificate representing ownership in a corporation.

Closely Held Corporation

• A corporation that limits stock issuance to a small group, often family members.

Publicly Held Corporation

• A corporation that sells its stock to the public on the open market.

Bond

• A financial instrument representing a loan made by an investor to a borrower, with a commitment to repay with interest.

Certificate of Incorporation

• A state-issued license granting permission to establish a corporation.

Dividend

• A portion of a corporation's profits distributed to its stockholders.

Horizontal Merger

• The merger of two or more companies that offer similar products or services within the same market.

Vertical Merger

• A merger between companies in different stages of production for the same product or service.

Conglomerate

• A business formed by merging more than three companies that produce unrelated products.

Multinational Corporation (MNC)

• A large corporation that operates and sells its products globally.

Business Franchise

• A semi-independent business model where an operator pays fees to a parent company for the right to sell their products/services in a specific area.

Royalty

• Payment made as a share of earnings to an entity for the use of their property or service.

Cooperative

• A business organization that is owned and operated collectively by a group for mutual benefit.

Consumer Cooperative

• A retail outlet owned by the consumers who use its services/products.

Service Cooperative

• A cooperative organization that provides services rather than tangible goods.

Producer Cooperative

• An agricultural marketing cooperative assisting members in selling their products.

Nonprofit Cooperative

• Functions similarly to a business but does not aim to generate profit.

Professional Organization

• Nonprofit group focused on enhancing working conditions and improving professional skills in specific occupations.

Business Association

• Nonprofit entity that fosters collective interests of businesses in a geographic area.

Trade Association

• Nonprofit organization advocating for the interests of a specific industry.