Business Concepts Flashcard

Front

What is a sole proprietorship?

Back

A business owned and managed by a single individual

Front

What does liability refer to in a business context?

Back

A legally bound obligation to pay debts

Front

What are fringe benefits?

Back

Payment other than wages or salaries

Front

What is a partnership in business terms?

Back

A business organization owned by two or more persons

Front

What is an income statement?

Back

A report showing a business’s sales, expenses, net income, and cash flows for a period of time

Front

What does depreciation refer to in a business context?

Back

A noncash charge for the general wear and tear on capital goods

Front

What is cash flow?

Back

The sum of net income and noncash charges such as depreciation.

Front

What is an entity in a business context?

Back

A unit or being with distinct and independent existence

Front

What defines a corporation?

Back

A form of business organization recognized by law as a separate legal entity with all the rights of an individual.

Front

What is the term for the amount borrowed when getting a loan or issuing a bond?

Back

Principal