TOPIC FIVE (TEST - Vocabulary)
A. PLEASE FILL IN THE BLANKS WITH THE CORRECT TERM.
1. A form of business organization in which the business is owned and managed by a single individual is known as: ____________________
2. An authorization from the local government that sole proprietors must obtain to operate a business is called: ____________________
3. Sole proprietors may be prohibited from operating businesses out of their homes by: ____________________
4. A form of business organizations in which all partners share equally in both responsibility and liability is called: ____________________
5. A semi-independent business that pays fees to a parent company, and in return the business is granted the exclusive right to sell a certain product or service in a given area is known as: ____________________
6. A legal entity owned by individual stockholders, each of whom has limited liability for the firm’s debts is known as: ____________________
7. When corporations determine their profits, they often choose to pay a share of those profits to stockholders in payments called: ____________________
8. A formal contract issued by a corporation or other entity that includes the promise to repay borrowed money with interest at fixed intervals is known as: ____________________
9. A certificate of ownership in a corporation is called: ____________________
10. When three or more unrelated businesses merge to produce totally unrelated goods or services, this combination is called: ____________________
11. Institutions that function much like business organizations but do not operate for the purpose of generating profit are known as: ____________________
12. When companies contract with another company to do a specific job that would otherwise be done by a company’s own workers is known as: ____________________
13. The movement of some of a company’s operations, or resources of production, to another country is known as: ____________________
14. A theory about the relationship of education to wages which suggests that the completion of college signals to employers that a job applicant is intelligent and hard-working is called: ____________________
15. Nonprofit organizations that promote the interests of particular industries are called: ____________________
16. Retail outlets owned and operated by consumers which sell merchandise to their members at reduced prices are known as: ____________________
17. A business organization owned and operated by a group of individuals for their shared benefit is called: ____________________
18. The theory that education increases efficiency of production and thus results in higher wages is called: ____________________
19. The wage rate, or price of labor services, that is set when the supply of workers meets the demand for workers in the labor market is known as: ____________________
20. The quantity of output produced by a unit of labor is called: _______________
21. The unofficial barrier that sometimes prevents women and minorities from advancing to the top ranks of organizations that are dominated by white men is called: ____________________
22. An organization of workers that tries to improve working conditions, wages, and benefits for its members is known as: ____________________
23. An organized work stoppage intended to force an employer to address union demands is known as: ____________________
24. State laws that prohibit mandatory union membership are known as: ____________________
25. Someone in a professional or clerical job who usually earns a weekly salary is called: ____________________
26. The negotiation of labor contracts that keep unnecessary workers on the company payroll is known as: ____________________
27. Foreign workers that are allowed to live and work in the United States only temporarily are known as: ____________________
28. Economists define all nonmilitary people who are employed or unemployed as: ____________________
29. Large corporations that produce and sell their goods and services in more than one country as called: ____________________
30. A form of business organization that has the advantage of limited liability for owners is known as: ____________________
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