chapter 3

2. gradual wear on capital goods during production
3. feature of taxation that allows stockholders’
4. to cease or delay payment on some or all debts for a limited amount of time
7. form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, sue and be sued
9. stock of goods held in reserve; includes finished goods waiting to be sold and raw materials to be used in production
10. unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm; most common form of business organization in the United states
12. court-granted permission to an individual or
13. check paid to stockholders, usually quarterly, representing portion of corporate profits
15. nonprofit association performing some kind of economic activity for the benefit of its members corporate income tax tax on corporate profits publicutility company providing essential services such as water and electricity to consumers, usually subject to some government regulations
17. requirement that an owner is personally and fully responsible for all losses and debts of a business; applies to proprietorships, general partnerships
18. corporation producing and selling without regard to national boundaries and whose business activities are located in several different countries

1. combination of two or more firms producing the same kind of product
5. economic institution that operates like a business but does not seek financial gain; schools,churches, community service organizations
6. firm with four or more businesses making unrelated products, with no single business responsible for a majority of its sales
8. amount borrowed when getting a loan or issuing a bond
11. unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm; same as general partnership
14. combination of firms involved in different steps of manufacturing or marketing
16. to be taxed both as corporate profit and as personal income merger combination of two or more business enterprises to form a single firm