VOCAB-Chapter 3 Bus. Orgs (2026)

feature of taxation that allows stockholders’ dividends to be taxed both as corporate profit and as personal income_

• single taxation
• corporate tax exemption
• capital gains tax
• double taxation

1. amount borrowed when getting a loan or issuing a bond

• Principal
• Collateral
• Interest
• Term

check paid to stockholders, usually quarterly, representing portion of corporate profits

• Stock buyback
• Capital gain
• Interest payment
• Dividend

1. certificate of ownership in a corporation; common or preferred stock

• option
• debt
• stock
• bond

1. economic institution that operates like a business but does not seek financial gain; schools,churches, community service organizations

• For-profit corporations
• Non-profit organizations
• Government agencies
• Private businesses

written government approval to establish a corporation; includes company name, address, purpose of business

• Business License
• Corporate Charter
• Partnership Agreement
• Charter

unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm; same as general partnership

• Limited Liability Company
• Corporation
• Partnership

• Sole Proprietorship

1. stock of goods held in reserve; includes finished goods waiting to be sold and raw materials to be used in production

• Inventory
• Assets
• Supplies
• Merchandise

unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm; most common form of business organization in the United States

• Limited Liability Company
• Partnership
• Corporation
• Sole proprietorship

1. requirement that an owner is personally and fully responsible for all losses and debts of a business; applies to proprietorships, general partnerships

• limited liability
• unlimited liability
• partial liability
• shared liability