| A | B |
|---|
| proprietorship | a company owned by an individual or a family |
| partnership | a business owned by 2 or more individuals who share the investment, work, risks, and potential losses |
| corporation | a business organization that gets a charter to do business, sells shares of stock, provides limited liability and shares profits among the stockholders |
| stock | a certificate that shows that an individual has invested in and is part owner of a corporation. This gives the stockholder a voice in choosing the Board of Directors and a share of the company's profits |
| dividends | the share of the profits that is paid to stockholders of a company |
| trust | a business combination where a board of directors contro several companies and runs them as one company |
| monopoly | control of a given industry by one company that eliminates competition |
| economies of scale | buying supplies and resources in large quantities to cut costs of production and allows a company to undersell its competitors |
| vertical integration | controlling companies in a given industry from resources to the marketing of the finished product that allows for cheaper production costs |
| horizontal integration | combining companies in the same business to create a larger combination that can cut costs and drive out competition |
| laissez-faire capitalism | the non-regulation of business by the government that gives companies a free hand to compete as they see fit |
| Sherman Antitrust Act | law passed by Congress in 1890 that made monopolies illegal, but not enforced until after 1900 |
