Ch. 8 test Review
| A | B |
|---|---|
| This is a semi-independent company that pays royalties to a parent company | Franchise |
| : a legal entity, or being, owned by individual stockholders, each of whom has limited liability for the firm’s debts | corporation |
| This is a certificate of ownership in a corporation | Stock |
What are the share of earnings that a business owner pays for the right to be part of a certain business called?
What are the share of earnings that a business owner pays for the right to be part of a certain business called? The “Net Profit” is the earnings result from a business operation during a fiscal period (which is normally a year). this profit is divided proportionately among the shareholders of the company.
What are organizations that are in the business of benefiting society?
What are organizations that are in the business of benefiting society and operate like a business called? multinational corporation.
What is a payment other than wages or salaries called?
fringe benefit. a payment other than wages or salaries.
What is a semi independent business that pays fees to a parent company called?
Chapter 8 Econ Terms
| A | B |
|---|---|
| Business franchise | A semi-independent business that pays fees to a parent company in return for the exclusive right to sell a certain product or service in a specific area. |
| Royalty | Share of earnings given as payment to franchiser or producer of a good or service. |
What is a major advantage of a business that is a partnership rather than a sole proprietorship?
One major advantage of a business that is a partnership rather than a sole proprietorship is that the responsibility for the business is shared. This way one person does not have everything put on them and they won’t have so much stress.
What is the most common form of business?
sole proprietorship
The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation. A Limited Liability Company (LLC) is a business structure allowed by state statute. Legal and tax considerations enter into selecting a business structure.
What is a fringe benefit a payment other than wages or salaries?
A fringe benefit is something that your employer offers you that is above and beyond your annual salary or other wages. These are perks that employers offer in order to attract and retain the best talent. This includes things like health and dental insurance, retirement benefits, bonuses, and paid time off.
What do you mean by semi independent business?
A semi-independent business that pays fees to a parent company in return for the exclusive right to sell a certain product or service in a specific area. Share of earnings given as payment to franchiser or producer of a good or service. A business organization owned and operated by a group of individuals for their mutual benefit.
What is a combination of two or more firms?
The combination of two or more firms competing in the same market for the same good or service. The combination of two or more firms involved in different stages of producing the same good or service. The protion of corporate profits paid out to stockholders. Large corporation that produces and sells its goods and services throughout the world.
What are the terms of a sole proprietorship?
The legally bound obligation to pay debts. A sole proprietorship ends with the life of the owner. A business organization owned by two or more persons. Most common form of partnership where both partners share responsibility and liability. Only one partner in a partnership has unlimited personal liability.
How are management fees paid to related companies?
Traditionally, one method of moving income from Opco to Holdco or between two related Opcos has been for one Opco to pay a management fee to its parent company or other related company. While the receiving company declares the management fee as income, the paying Opco is able to deduct the management fee paid.
