| A | B |
|---|
| sole proprietorship | a business owned and run by one person |
| economic institutions | persons and organizations that use or represent the factors of production |
| business organization | a profit-seeking enterprise that serves as the main link between scarce resources and consumer satisfaction |
| fringe benefits | employee benefits in addition to wages and salaries |
| inventory | a stock of finished goods and parts in reserve |
| unlimited liability | the owner is personally and fully responsible for all losses and debts of a business |
| general partneship | all partners are responsible for the management of the business |
| limited partnership | at least one person is not active in the daily running of a business |
| articles of partnership | legal papers drawn up to specify the arrangements between partners |
| corporation | a form of business organization recognized by law as a separate legal entity having all the rights of an individual |
| charter | a government document giving permission to create a corporation |
| stock | ownership parts of the firm |
| stockholder | investors in a business |
| common stock | represents the basic ownership of a corporation. person has one vote |
| preferred stock | represents nonvoting ownership of the corporation |
| bond | a written promise to repay the amount borrowed at a later date |
| principal | the amount borrowed |
| interest | the price paid for the use of another's money |
| bankruptcy | court-granted permission to not pay some of its debt |
| unlimited life | the business continues to exist even when ownership changes |
| merger | combination of two or more business enterprise to form a single firm |
| horizontal merger | two or more firms that produce the same kind of product join forces |
| vertical merger | two or more firms that are involved in different steps of manufacturing or marketing come together |
| conglomerate | a firm that has at least four businesses, each making unrelated products |
| multinational | a corporation that has manufacturing or service operations in a number of different countries |
| nonprofit organization | schools, churches, medicare facilities |
| cooperative (co-op) | a voluntary association of people formed to carry on some kind of economic activity that will benefit its members |
| consumer cooperative | a voluntary association that buys bulk amounds of goods, such as food and clothing on behalf of its members |
| service cooperative | deals with services rather than goods |
| credit union | made up of employees from a particular company of government agency. They receive funds from their members who in turn receive interest on their money |
| producer cooperative | helps members sell their products |
| labor unions | an organization formed to work for its members' interests in various employment matters |
| collective bargaining | the negotiations between representatives of labor and management |
| professional association | a group of people in a specialized occupation that work to improve the working conditions, skill levels, and public perceptions of the profession |
| chamber of commerce | it promotes the welfare of its members and the community |
| Better Business Bureau | a nonprofit organization sponsored by local businesses to provide general information on companies for the consumer |
| public utilities | investor- or municipal-owned companines that offer an important service to the public, such as water or electric service |
