Economics Vocabulary Chapter 3

business owned and run by one person

• sole proprietorship

• partnership

• stockholder

• cooperation

owner is personally responsible for all losses and debts of a business

• unlimited liability

• corporation

• Partnership

• Sole proprietorship

surplus merchandise

• cash flow

• stock

• merchandise

• inventory

when the owner dies, retires, or sells the business it ceases to exist

• charter

• limited life

• bond

• bankruptcy

business owned by two or more people

• corporation
• sole proprietorship
• limited liability company
• partnership

at least one partner is not active in the daily running of the business

• silent partner
• limited partnership

• stockholder

• inactive partner

court granted permission not to pay back debts and forces a company out of business

• bankruptcy

• charter

• cash flow

• dividend

business recognized as a separate legal entity

• cooperation

• partnership

• limited partnership

• stockholder

a legal document that gives permission to form a cooperation

• Bylaws
• charter

• Certificate of Dissolution
• Operating Agreement

ownership in part of a company

• Real estate
• Bond
• Stock
• Savings account