Puzzling Economy

3. situation in which a firm ceases to exist when an owner dies, quits, or sells the business
6. form of business organiza- tion recognized by law as a separate legal entity
10. common measure of business profits determined by subtracting all expenses, including taxes, from revenues
11. unincorporated business owned and operated by two or more people who share the profits and responsibility for debts
13. written government approval to establish a corporation
14. total amount of new funds a business generates from operations
15. formal contract to repay borrowed money with interest
17. form of partnership where one or more partners are not active in the daily running of the business and have limited responsibility for debts
20. requirement that an owner is personally and fully responsible for all losses and debts of the business.
21. taxation of dividends both as corporate profit and as personal income
22. payment made for the use of borrowed money
24. stock of finished goods and parts held in reserve.

1. combinationof two or more firms producing the same kind of product
2. form of partnership where all partners are equally responsible for management and debts
4. report showing a firm’s sales, expenses, net income, and cash flows for a certain period, usually three months or a year
5. most frequently used form of corporate ownership, with one vote per share for stockholders
7. people who own a share or shares of stock in a corporation
8. the smallest form of business and have the smallest fraction of total sales.
9. gradual wear on capital goods
12. certificate of ownership in a corporation
16. the proprietorship does not have to pay separate business income taxes because the business is not recognized as a separate legal.
18. form of corporate ownership without vote, in which stockholders get their investments back before common stockholders
19. check that transfers a portion of the company profits to stockholders, usually quarterly
23. amount borrowed when getting a loan or issuing a bond