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Business and Labor

Terms from Topic 5 in SAVVAS

TermDefinition
Sole Proprietorship A business owned and managed by a single individual
Business License Authorization to operate a business issued by a local government
Zoning Laws Laws in a city or town that designate certain areas, or zones, for residential and business use
Liability The legal obligation to pay debts
Fringe Benefits Payments to employees other than wages or salary
Limited Liability Partnership A partnership in which all partners are limited partners
Assets The money and valuables belonging to an individual or business
Business Franchise A semi-independent business that pays fees in return for exclusive rights to sell products or services in a given area
Corporation A legal entity owned by individual stockholders, each of whom has limited liability for the firm's debts
Stock A certificate of ownership in a corporation (publicly held corporations and closely held corporations have different ways of dispersing these)
Bond A formal contract issued by a corporation that includes a promise to repay borrowed money, with interest
Dividend The portion of corporate profits paid out to stock holders (essentially these earnings are double taxed, once by the corporation and once by the stockholder)
Horizontal Merger The combination of two or more firms competing in the same market (Office Depot and The Office Club, Viking Office Products, and Office Max)
Vertical Merger The combination of two or more firms involved in different stages of producing the same good or service
Limited Liability Corporation A type of business with limited liability for the owners, with the advantage of not paying corporate income tax
Conglomerate A combination merging more than three businesses that produce unrelated products or service
Created by: Boone555
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