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Business and Labor
Terms from Topic 5 in SAVVAS
| Term | Definition |
|---|---|
| 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 |