Chapter 7 Business Operations Vocabulary

An organization that uses resources to produce goods and services that are sold to consumers, other firms, or the government is called a ________.

• Business firm

• Non-profit organization

• Government agency

• Household

The behavior of a worker who is putting forth less than the agreed-to effort is known as ________.

• Shirking

• Motivation

• Overtime

• Promotion

A business that is owned by one individual who makes all business decisions, receives all the profits or incurs all the losses of the firm, and is legally responsible for the debts of the firm is called a ________.

• Sole proprietorship

• Corporation

• Partnership

• Limited liability company

A business owned by two or more co-owners, called partners, who share profits and are legally responsible for debts is called a ________.

• Partnership

• Corporation

• Sole Proprietorship

• Franchise

A legal entity that can conduct business in its own name in the same way that an individual does is called a ________.

• Corporation

• Sole Proprietorship

• Partnership

• Franchise

A person who owns shares of stock in a corporation is called a ________.

• Stockholder

• Manager

• Employee

• Creditor

Anything of value to which the firm has a legal claim is called an ________.

• Asset

• Liability

• Expense

• Revenue

A condition in which an owner of a business firm can lose only the amount he or she has invested in the firm is called ________.

• Limited liability

• Unlimited liability

• Double taxation

• Sole proprietorship

An important decision-making body in a corporation that decides corporate policies and goals, among other things, is called the ________.

• Board of directors

• Shareholders

• Employees

• Auditors

A contract by which a firm (usually a corporation) lets a person or group use its name and sell its goods in exchange for certain payments and requirements is called a ________.

• Franchise

• Merger

• Partnership

• Sole Proprietorship