Unit III Vocabulary Flashcards

Flashcards for Unit III Vocabulary

bank

A business that receives deposits and makes loans.

assets

Something of value owned by an organization or person.

credit cards

A card from businesses or banks used for purchasing on credit.

debit card

A card that allows you to access the money in your bank account.

saving

Putting money aside for later use.

interest

Money paid periodically for the use of borrowed money.

principal

The amount of money you borrowed.

investing

Using money you have saved to earn more money.

diversification

Investing in a wide variety of financial assets.

solo proprietorship

A business owned by one person.

liability

A legal obligation to pay debts.

partnership

A business owned by two or more co-owners.

corporation

A company treated under the law as a single body with its own powers, separate from its owners.

multinational corporation

A business that operates in more than one country.

business franchise

A parent company grants to an individual business owner the exclusive right to use its trade name and sell its products in a specific location.

cooperative business

A business that is owned and operated by a group of people for a shared benefit.

non profit organization

An organization that does not operate to make a profit.