Chemistry Unit 2.1

Sole Proprietorship

A business organization owned by 1 person. Owner is personally liable for all debts of the business.

Partnership

A business organization owned by 2 or more people. Each partner is personally liable for all debts of the business.

Corporation

A separate legal entity. Owners of corporations (stockholders) are not personally liable for debts of the corporation.

Assets

Resources the company controls and expects to benefit from in the future.

Liabilities

Measurable amounts that the company expects to give up in the future to settle what it presently owes to creditors.

Stockholders’ Equity

Owner’s claims to the business resources.

Revenues

Sales of goods or services to customers, measured at the amount the business charges the customer.

Expenses

The costs of doing business necessary to earn revenues.

Dividends

Distributions of a company’s earning to its stockholders as a return on their investment.

Separate Entity Assumption

The financial reports of a business are assumed to include the results of only that business's activities.

Homogeneous Mixture

A type of mixture that has uniform composition and properties. The components are spread out evenly throughout the mixture.

Heterogeneous Mixture

A type of mixture that has varying composition and properties. The individual substances are visually distinct and may have two or more phases.

Solution

A homogeneous mixture in which one component is uniformly dissolved and scattered in another component.

Suspension

A heterogeneous mixture in which the solute particles do not dissolve, but get suspended throughout the bulk of the solvent when left undisturbed.

Colloid

A heterogeneous mixture in which a microscopically dispersed substance is suspended throughout another substance. Colloids have larger particles than solutions but smaller particles than suspensions.

Tyndall Effect

The scattering of light by colloidal particles, which causes the mixture to appear cloudy or opaque.