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World of Business
Parson - Chp 2 Exploring the World of Buisness
Question | Answer |
---|---|
Free Enterprise System | A country where people are free to produce the goods and services they chose. |
Profit | A buisness that earns more money than they spend. |
Loss | A business that spends more money than they earn. |
Entrepreneurs | transform ideas for products or services into real-world business. |
Capital | Money supplied by investors, banks, or owners, of a business. |
Service business | A company that provides a service for a fee. |
Merchandising business | a company that buys finished products and resells them to individuals or other businesses |
Manufacturing business | a company that buys raw materials, such as wood or iron ore, and transforms them into finished products through the use of labor and capital. |
Sole Proprietorship | a business owned by one person |
Partnership | a business owned by two or more persons. |
Corporation | a business organization that is recognized by law to have a life of its own. |
Charter | Legal permission given to a corporation that gives it certan rights and privileges. It spells out the rules under which the corporation is to operate. |
Accounting System | A system designed to collect, document, and report on financial transactions affecting the business. |
Manual Accounting System | Accounting information which is processed by hand. |
Computerized Accounting System | the financial information is recorded by entering it into a computer. |
Genneral Accepted Accounting Principles | Accounting principles used by all accountants |
Financial Reports | Summarized information about the financial status of a business |
Financial Accounting | Reporting information to external users |
Management Accounting | Reporting information to internal users. |
Business Entity | Accounting assumption that says that a company exists independently of its owners personal holdings. |
Accounting Period | a period of time covered by an accounting report. |
Going Concern | An assumption that the business will continue to operate unless it is clear that it cannot survive. |