Economics Chapter 3 Study Guide

type of business with less than 75 stock holders but is taxed as individual
s corporation
type of business has private ownership without risk of sole proprietorship
LLC
type of business promotes the collective interest of members rather than monetary gains
nonprofit organization
type of business privately owned but operates as if part of a chain
franchise
type of business with voluntary association of people formed to carry on economic activity that will benefit members
cooperative
organization that promotes common interest of members
business association
type of business limited to 30-50 shareholders and is perfect for individual who wants to actively run the business
close corporation
organization works for member’s interest concerning pay, working hours, benefits, etc
labor unions
type of business has unlimited number of shareholders and is most common form
general corporation
organization made up of professional or specialized workers and aims to promote the public perception and improve the skill set of the profession
professional association
legal body that own and operate plants
firms
business that is owned and operated by a single person
sole proprietorship
payments of corporate profits come in the form of
dividends
business that is jointly owned by 2 or more people
partnership
owners of a corporations
stockholders
group of related firms that produce similar products
industry
cred union is an example of a
service co-op
farmers combining their production to sell together is an example of a
producer co-op
community that buys food and clothing together in bulk to get lower prices is an example of a
consumer co-op
corporation that has plants in several different countries
multinational
two ways business can expant
investment and mergers
type of business organization that is recognized as a legal entity while retaining all the rights of an individual
corporation
type of merger involves companies that complete various parts of a production process
vertical combination
type of merger involves companies that are involves in businesses that basically do the same thing
horizontal combination
type of merger involves companies that are involves in completely different industries
conglomerate
document that grants permission to be a corporation
charter
basic ownership of a corporation with voting right
common stock
basic ownership of a corporation without voting rights
preferred stock
type of business organization that is most common in the US
sole proprietorship
making many different products so that your company is not reliant on a single industry is referred to as
diversification
major disadvantage of both sole proprietorships and partnerships
unlimited liability
major disadvantage of a corporation
double taxation
type of business that is easiest to organize
sole proprietorship
business has advantage of raising financial capital easiest
corporation
business has disadvantage of having to follow strict government guidelines
corporation
business had advantage of professional management
corporation