| A | B |
|---|
| Sole proprietorship | business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm |
| principal | amount borrowed |
| depreciation | a noncash charge the firm takes for wear and tear on its capital goods |
| limited libility | the corp, NOT its owners, is responsible for its obligations (stockholders are responsible to the money they invested |
| labor union | organization that works for its members interests concerning pay, work hours, and benefits |
| inventory | stock of finished goods and parts held in reserve |
| corporation | form of business organization recognized by law as a separate legal entity with all rights and responsibilities of an individual |
| multinational | a corporation that has manufacturing or service operations in a number of different countries. |
| interest | price paid for use of another’s money |
| consumer cooperative | co-op...nonprofit association performing economic activity for benefit of its members |
| dividend | a check that Transfers a portion of corporation profits to shareholders |
| partnership | business jointly owned by 2 or more people who share The profits and the responsibilities for the business |
| cash flow | sum of net income and noncash charges like depreciation |
| net income | business profits determined by subtracting all expenses including taxes from revenues |
| common stock | ONE VOTE PER share of stock |
| preferred stock | non-voting ; NO right to elect board of directors….BUT 1st to get dividends and 1st to get investment back if corporation goes out of business |
| collective bargaining | the process whereby workers organize collectively and bargain with employers regarding the workplace |
| credit union | a financial organization that accepts DEPOSITS from and makes LOANS to employees of a particular company or gov’t agency |
| bankruptcy | the legal proceedings whereby a bankrupt person's assets are distributed among those to whom he/she owes a debt |
| nonprofit organization | an economic organization that operates like a business but does not seek financial gain (ie. American Red Cross) |
| laissez-faire | FRENCH " allow them to do" philosophy gov't should NOT interfere with business activity |
| natural monopoly | describes a firm's cost structure (high fixed cost, extremely low constant marginal cost) |
