Ch. 8 Vocabulary Flashcard

Front

A business owned and operated by one person is a

Back

sole proprietorship

Front

An organization of workers formed to represent its members' interest in various employment matters is a

Back

labor union

Front

A company ceases to exist when the owner dies, quits or sells the business is

Back

limited life

Front

The owner is personally financial responsible for the business. This is a major disadvantage of sole proprietorships and partnerships.

Back

unlimited liability

Front

The bottom line, a more comprehensive measure of a company's profits is

Back

cash flow

Front

A business owned and controlled by 2 or more people is a

Back

partnership

Front

The type of partnership in which partners have equal decision making authority is a

Back

general partnership

Front

The type of partnership in which at least one partner rarely takes an active role in business decisions is a

Back

limited partnership

Front

A form of business that is recognized by law as a separate legal entity and is treated like an individual is a

Back

corporation

Front

A company that has at least 4 businesses that sell unrelated products is a

Back

conglomerate