| A | B |
|---|
| Economic Institutions | people and orginizations that represent or use productive resources to satisfy wants and needs of producers and consumers |
| non-profit orginizations | economic instutions not operating for financial gain |
| buisness orginizations | economic instutions that produces in hopes of ganing econonmic profit |
| sole proprietorship | form of buisness orginization owned by and operated by one person |
| unlimited liability | requirement that owners are personally and fully responsibile for all buisness debts, applies to sole proprietorship and partnerships |
| inventory | extra supplies of goods held in reserve to meet demands |
| fringe benefits | benefits received by employees in addition to wages and salaries |
| partnership | buisness orginazation owned by two or more people |
| general partnership | most common form of partnership where all partners have unlimited liability |
| limited partnership | form of a partnership were one or more partners contribute to financial capital but seldom participate in managment decisions |
| limited life | situation in which a firm ceases to exist when the owner(s) sell,leave or join new ones; applies mainly to partnerships and sole proprietorship |
| corporation | form of a buisness recognized as a seperate legal entity with all the rights and responsiblites of an individual |
| incorporate | legal steps taken to form a corporation |
| charter | written goverment permission allowing a corperation to be formed |
| limited liability | requirement thatan owners responsibility for for the debts of a buisness is limited to the owners investment; applies to corperations and limited partnerships |
| stock | ownership shares of a corporation; common and prefered stock |
| shareholders | buisnesses or individuals, who owns shares a stock in a corporation; same has shareholders |
| dividend | quarterly payments to the owners of a corporation |
| common stock | ownership shares in a corporaation that allows owners to vote for a board of directors, but has last claim on dividends and assets |
| board of directors | represenatives elected by common shareholders to set policies and goals and hire professional managers of a corporation |
| prefered stock | non-voting ownership shares in a corporation that has first claims on dividends and assets and, in the case of liquidation assets |
| proxy | ballot that allows the represenative of a shareholder to vote in corporate matters |
| bond | formal promises to repay borrowed money |
| principal | amount of money borrowed when getting a loan or issuing a bond; basis upon which intrest is computed |
| intrest | money paid for the use of borrowed funds |
| bankruptcy | condition of being unable to pay bills; insolvency |
| unlimited life | situation in which the legal entity of a buisness is not affected by changes of ownership; applies only to the corporation |
| merger | the joining of two or more companies, sometimes by takeover; to form a single buisness enterprise |
| horiziontal merger | joining of two or more companies involved in the same type of buisness |
| vertical merger | joining together of companies that engage in sucessive stages of production or marketing |
| conglomerate | firm with four or more buisnesses producing unrelated products, none of which is responsible for a majority of it's sales |
| multinational | coporation that produces and sells without regard to national boundaries and who's buisnesses activites are located in several countries |
| coorperative | nonprofit assication of people that works to benefit the member's welfare; co-op |
| consumer cooperative | nonprofit assocation that buys consumer products for it's members at below retail prices |
| service cooperative | nonprofit assocation of consumers that secures services for the benefit of it's members |
| credit union | service coorperative that accepts deposits from, and makes loans to, members at favorable rates |
| producer cooperative | nonprofit cooperative organization that secures a market for the output of it's members |
| labor union | assocation of workers that promotes and defends pay and other jon-related intrests of it's members |
| collective bargaining | process during wich labor unions and managment discuss pay, benefits and working conditions |
| professional assocation | affilations of professional workers from specialized occupations |
| Chamber of Commmerce | nonprofit orginization of local buisnesses whose purpose is to promote common intrests |
| Better Buisness Bureau | buisness sponsored nonprofit orginization providing information to consumers about local companies |
| public utilites | companies providing essential services to consumers and subjected to some govermental regulations |
