| A | B |
|---|
| Economic institution | 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 satisfactions |
| Sole proprietorship | A business owned and run by one person |
| Unlimited liability | Owner is responsible for all expenses |
| Inventory | A company's merchandise, raw materials, and finished and unfinished products which have not yet been sold |
| Fringe benefit | Non-salary employee compensation like insurance |
| Limited life | When the owner dies, quits, or sells the business, the firm itself legally ceases to exist |
| Partnership | A business jointly owned by two or more people |
| General partnership | All partners are responsible for the management and financial obligations of the business |
| Limited partnership | At least one partner is not active in the daily running of the business, but may have contributed funds to finance the operation |
| Articles of partnership | Legal papers that are drawn up to specify arrangements between partners |
| Limited liability | Type of investment in which a partner or investor cannot lose more than the amount invested |
| Corporation | A form of business organization recognized by law as a separate legal entity have all the rights of an individual |
| Incorporate | to form a registered company |
| Charter | A document, filed with a U.S. state by a corporation's founders, describing the purpose, place of business, and other details of a corporation |
| Stock | Ownership parts of the firm |
| Stockholder | Investors in the business |
| Shareholder | Investors in the business |
| Common stock | Basic ownership and receives on voter per share |
| Board of directors | Individuals elected by a corporation's shareholders to oversee the management of the corporation |
| Preferred stock | Nonvoting ownership but receive dividends before common stock holders |
| Proxy | A ballot that gives a stockholder’s representative the right to vote |
| Bond | A written promise to repay the amount borrowed at a later date |
| Principle | The amount borrowed |
| Interest | The fee charged by a lender to a borrower for the use of borrowed money |
| Organizational chart | A diagram used to show how different pats of the corporation are related |
| Bankruptcy | Court granted permission to not pay some or all of it debt |
| Unlimited life | The business continues to exist even when ownership changes |
| Revenue | Earnings from sales, dividends, interest, or other operations to pay taxes on |
| Merger | Where one business joins with another to form a single firm |
| Horizontal merger | When two or more firms that produce the same kind of product combine |
| Vertical merger | When firms involved in different steps of manufacturing or marketing combine |
| Conglomerate | A firm that has at least for business, each making unrelated products, where none has a majority of the sales |
| Multinational | A corporation that has manufacturing or services operations in many multiple countries |
| Nonprofit organization | Work in a businesslike way to make use of scare resources but do not seek financial gain for their members |
| Cooperative | A voluntary association of people formed to care on some kind of economic activity that will benefit its members |
| Consumer cooperative | Voluntary association that buys bulk amounts of goods and offers them at lower prices to their members |
| Service cooperative | Voluntary association that deals with services rather than goods |
| Credit union | A non-profit financial institution that is owned and operated entirely by its members |
| Producer cooperative | Helps members sell their products |
| Labor union | An organization formed to work for its members’ interests in various employment matters |
| Collective bargaining | 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 | Promotes the welfare of its members and community |
| Better Buisness Bureau | nonprofit organization sponsored by local businesses to provide general information on compan |
| Public utlity | Investor or municipal owned companies that offer an important service to the public |
