| A | B |
|---|
| free enterprise system | encourages individuals to start and operate their own business without government involvement |
| disposable income | the money left over after taxes are taken out of a consumer’s income. |
| discretionary income | the money left over from a consumer’s income after paying for basic living necessities such as food, shelter, and clothing. |
| recession | a period of economic slowdown that lasts for two quarters, or six months. |
| proprietorship | business owned by one person under unlimited liability |
| partnership | business owned by two or more people under unlimited liability |
| corporation | business owned by stockholders under limited liability |
| non-profit organization | business that is not for profit; money collect goes to a cause; business still has operating expenses |
| franchise | agreement to operate a business in name of a recognized company |
| unlimited liability | your financial liability is not limited to your investment in the business but also extends to your total ability to make payments |
| limited liability | personal assets of the owners cannot be taken if the company does not meet its financial obligations. |
| monopoly | when a company has exclusive control over a product or industry |
| stockholders | the owners of a corporation |
| DBA | registration process by which your county government officially recognizes that your business exists |
| horizontal organization | a structure where top management shares decision making with self-managing teams of workers who set their own goals and make their own decisions. |
| vertical organization | a hierarchical, up and down organizational structure in which the tasks and responsibilities of each libel are clearly defined. |
| articles of incorporation | identifies the name and address of a business |
| command economy | an economic system in which the government decides what, when and how much will be produced and distributed. |
