Economics Chapter 3 Test Flashcards

A business owned and run by a single person who has the rights to all profits and unlimited liability for all debts of the firm.

Requirement that an owner is personally and fully responsible for all losses and debts of the business.

Stock of finished goods and parts held in reserve.

<p>An unincorporated business owned and operated by two or more people who share the profits and responsibility for debts.</p> Signup and view all the answers

<p>A form of partnership where all partners are equally responsible for management and debts.</p> Signup and view all the answers

<p>A form of partnership where one or more partners are not active in the daily running of the business and have limited responsibility.</p> Signup and view all the answers

<p>A form of business organization recognized by law as a separate legal entity.</p> Signup and view all the answers

<p>Written government approval to establish a corporation.</p> Signup and view all the answers

<p>A certificate of ownership in a corporation.</p> Signup and view all the answers

<p>People who own a share or shares of stock in a corporation.</p> Signup and view all the answers

<p>A check that transfers a portion of the company profits to stockholders, usually quarterly.</p> Signup and view all the answers

<p>The most frequently used form of corporate ownership, with one vote per share for stockholders.</p> Signup and view all the answers

<p>A form of corporate ownership without vote, in which stockholders get their investments back before common stockholders.</p> Signup and view all the answers

<p>A formal contract to repay borrowed money with interest.</p> Signup and view all the answers

<p>The amount borrowed when getting a loan or issuing a bond.</p> Signup and view all the answers

<p>Payment made for the use of borrowed money.</p> Signup and view all the answers

<p>Taxation of dividends both as corporate profit and as personal income.</p> Signup and view all the answers

<p>Combination of two or more businesses to form a single firm.</p> Signup and view all the answers

<p>A report showing a firm's sales, expenses, net income, and cash flows for a certain period, usually three months or a year.</p> Signup and view all the answers

<p>A common measure of business profits determined by subtracting all expenses, including taxes, from revenues.</p> Signup and view all the answers

<p>Gradual wear on capital goods.</p> Signup and view all the answers

<p>The total amount of new funds a business generates from operations.</p> Signup and view all the answers

<p>Combination of two or more firms producing the same kind of product.</p> Signup and view all the answers

<p>Combination of firms involved in different stages of manufacturing or marketing.</p> Signup and view all the answers

<p>A firm with four or more businesses making unrelated products, with no single business responsible for a majority of its sales.</p> Signup and view all the answers

<p>A corporation producing and selling without regard to national boundaries and whose business activities are located in several different countries.</p> Signup and view all the answers

<p>An economic organization that operates like a business but does not seek financial gain.</p> Signup and view all the answers

<p>A nonprofit association performing some kind of economic activity for the benefit of its members.</p> Signup and view all the answers

<p>A nonprofit service cooperative that accepts deposits, makes loans, and provides other financial services.</p> Signup and view all the answers

<p>An organization that works for its members' interests concerning pay, working conditions, and benefits.</p> Signup and view all the answers

<p>Negotiation between union and company representatives over pay, benefits, and other job-related matters.</p> Signup and view all the answers

<p>A nonprofit organization of professional or specialized workers seeking to improve working conditions, skill levels, and public perception of its profession.</p> Signup and view all the answers

<p>A nonprofit organization of local businesses formed to promote their interests.</p> Signup and view all the answers

<p>A business-sponsored nonprofit organization providing information on local companies to consumers.</p> Signup and view all the answers

<p>A company providing an essential service such as water or electricity to consumers.</p> Signup and view all the answers

<p>Proprietorship, partnership, and corporation.</p> Signup and view all the answers

<p>With business licenses and fees.</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>Psychological satisfaction.</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>A situation in which a firm ceases to exist when an owner dies, quits, or sells the business.</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>A business jointly owned by two or more persons.</p> Signup and view all the answers

<p>General partnership and limited partnership.</p> Signup and view all the answers

<p>When articles of partnership are drawn up.</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>Through corporations.</p> Signup and view all the answers

<p>By filing for permission from the national government or the state where the business will have its headquarters.</p> Signup and view all the answers

<p>Common stock or preferred stock.</p> Signup and view all the answers

<ol> <li>The ease of raising financial capital 2) Limited liability for its owners 3) Directors of the corporation can hire professional managers to run the firm 4) Corporation continues to exist when ownership changes.</li> </ol> Signup and view all the answers

<ol> <li>Double taxation of corporate profits 2) Difficulty and expense of getting a charter 3) Owners/shareholders have little voice in how the business is run 4) Subject to more government regulation.</li> </ol> Signup and view all the answers

<p>One vote for each share of stock. The vote is used to elect a board of directors.</p> Signup and view all the answers

<p>Common stockholders have the power to vote and elect members for the board of directors. However, preferred stockholders receive their dividends first.</p> Signup and view all the answers

<p>Reinvestment and mergers.</p> Signup and view all the answers

<p>When a firm has multiple businesses so if one type fails, the whole firm doesn't go down.</p> Signup and view all the answers

<p>A multinational has its manufacturing and service operations in different countries, while a conglomerate has at least four businesses not necessarily in different countries.</p> Signup and view all the answers

<p>To promote the interests of others rather than financial gain for its owners.</p> Signup and view all the answers

<p>Direct: To produce and distribute goods and services (police, education, etc.) to consumers. Indirect: To help the economy operate smoothly and efficiently, and help its citizens through services such as social security, veterans benefits, and financial aid to students.</p> Signup and view all the answers

<p>Consumer: buys goods in bulk for its members; Services: provides services rather than goods; Producer: helps members to promote/sell goods.</p> Signup and view all the answers

<p>Credit unions are much more fair and less about profit for the institution.</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>Unlimited life.</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>Sales and expenses.</p> Signup and view all the answers

<p>The difficulty and expense of obtaining a charter.</p> Signup and view all the answers

<p>Owners or shareholders.</p> Signup and view all the answers

<p>Government regulation.</p> Signup and view all the answers