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Economics Ch. 8

Economics Chapter 8

QuestionAnswer
Person who organizes, manages, and assumes the risk of a business in order to gain profits. Entrepreneur
A beginning of business enterprise. Start up
Private funded agency that assists new businesses by providing advice or low-rent buildings and supplies Samll business incubator
Extra supply of the items used in a business, such as raw materials or goods for sale. Inventory
Income recived from the sale of goods and services; also, slips of paper documenting a purchase. Receipts
Business owned and operated by one person. Sole proprietorship
Owner of a business. Proprietor
Requirement that an owner is personally and fully responsible for all losses and debts of a business. Unlimited liability
All items to which a business or household holds legal claim. Assets
Business that two or more individuals own and operate. Partnership
Special form of partnership in which one or more partners have limited liability but no voice in management. Limited partnership
Partnership set up for a specific purpose for a short period of time. Joint ventures
Type of business organization owned by many people but treated by laws as though it were a person. Corporation
Share of ownership in a corporation that entitles the buyer to a certain part of the future profits and assets of the corporation. Stock
Requirement in which an owner's responsibility for a company's debts is limited to the size of the owner's investment in the firm. Limited liability
Articles of incorporation
Corporate charter
Common stock
Dividend
Preferred stock
Franchise
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