Economics Unit 2 Key Terms

assets

items of value owned by a person or company that could be converted to cash.

board of directors

a group of elected or appointed individuals who oversee the activities of a company or organization.

bond

a debt security issued by a corporation or government and sold to investors; bonds are typically issued for a certain period of time.

broker

an agent who buys or sells for another person or organization on a commission basis without having title to the property or item of value.

business license

a permit issued by a government agency that allows individuals or companies to conduct business.

capital gains

profits from the sale of property, stocks, or bonds.

conglomerate

a company that owns a controlling stake in a number of smaller companies, all of which conduct business separately.

cooperative

a business or organization owned by and operated for the benefit of members using its services.

corporation

the most common form of business organization, typically chartered by a state and given legal rights as an entity separate from its owners.

dividend

a distribution of part of a company's earnings to its shareholders.

fringe benefit

something extra given by an employer to workers in addition to their regular pay, such as health insurance or vacation pay.

Initial Public Offering (IPO)

the first sale of stock by a private company to the public.

liability

the state of being responsible for something, especially in a legal or actuarial sense.

limited liability company

a business structure that combines features of a partnership or sole proprietorship with the limited liability of a corporation.

merger

the combining of different companies into a single company to enhance the financial and operational strengths of both organizations.

non-profit organization

a corporation or organization that conducts business for the benefit of the general public without shareholders and without a profit motive.

partnership

a business organization in which two or more individuals own and operate the business.

royalty

a payment made by one company (the licensee) to another company (the licensor) in exchange for the right to use intellectual property or physical assets owned by the licensor.

shareholder

another term for stockholder.

sole proprietorship

a business structure in which one person owns all the assets of the business, as opposed to a partnership or a corporation.

stock

a share of a company held by an individual or group.

stockholder

a person or organization that owns shares of stock in a company.

trade name

a name used by a company that is different from that of the owner, or different from the name the company is registered under.