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:

END