| A | B |
|---|
| Merger | 2 or more businesses combining |
| Horizontal Merger | firms in same business combine |
| Vertical Merger | firms in different portions of manufacturing process combine |
| Conglomerate | firm with 4 businesses, all unrelated |
| Multinational | firm with operations in many countries |
| Economic Institution | persons or firms that use the factors of production |
| Business Organization | profit seeking enterprise that provides goods or services to consumers to satisfy wants and needs |
| Factors of Production | Land Labor Capital Entrepreneurship |
| Scarcity | unlimited wants/needs; limited resources |
| Sole Proprietorship | Business owned/run by one person |
| Unlimited Liability | to be personally responsible for all debts and losses of the business |
| Inventory | a stock of finished goods for sale |
| Fringe Benefits | health care, dental insurance, paid vacation, sick leave, retirement |
| Limited Life | a business dies when the owner dies or quits working |
| General Partnership | all partners are 100% responsible for the business |
| Limited Partnership | At least one partner is not active in the business |
| Articles of Partnership | the contract or Partnership Agreement that explains the relationship between the partners |
| Limited Liability | investor's responsibility for debts of the business are limited |
| Corporation | a separate legal entity with rights of an individual |
| Incorporate | to form a corporation with government permission |
| Charter | government document that gives permission to create a corporation |
| Stock / Shares | represents ownership in a corporation |
| Stockholder / Shareholder | owners of a corporation |
| Dividend | corporate profits shared with stockholders |
| Common Stock | basic ownership in a corporation |
| Board of Directors | leaders of a corporation who set policy and manage the company |
| Preferred Stock | represents favored corporate ownership with different rights than common stock |
| Proxy | allows a representative to vote on behalf of a shareholder in corporate matters |
| Bond | written promise to repay a loan at a later date |
| Principal | the amount of money borrowed |
| Interest | the cost of borrowing money, to be repaid with the principal |
| Bankruptcy | court granted permission to not re-pay debts |
| Unlimited Life | business continues to exist after a change in ownership |
| Revenues | the money coming into a business |
| Non-Profit Organization | Businesses that do not seek financial gain, but provide a community service |
| Cooperative / Co-Op | voluntary association of people that carry on some economic activity that benefits members |
| Consumer Co-Op | buys bulk goods and offers low prices to members; Sam's Club |
| Service Co-Op | offers bulk services for sale at lower cost to members; Credit Union |
| Credit Union | like a bank for employees; members get banking services at lower cost |
| Producer Co-Op | helps members ell their products; Farming Co-Ops |
| Labor Unions | negotiate for members regarding employment conditions |
| Professional Association | group of people who work in the same job; American Medical Association |
| Chamber of Commerce | local organization of community businesses that promote economic development in a city |
| Better Business Bureau | non-profit that protects consumers by supplying info about companies |
| Public Utility | municipal owned companies that provided services like water, electricity, sewage services |
