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Ec2Ch5
EcCh5 Business Organization and Finance
31
Economics
12th Grade
03/18/2018

Additional Economics Flashcards

 


 

Cards

Term
Sole Proprietorship
Definition
a form of business organization in which one person owns and operates the business
Term
partnership
Definition
a business organization in which two or more individuals enter a business as
owners and share the profits and losses
Term
corporation
Definition
a form of business organization that has a legal existence of its own,
separate from those who created it.
Term
Public enterprises
Definition
a form of business organization, also known as a Crown
corporation that is publicly owned and provides essential services
Term
Limited liability
Definition
the amount a person has invested into a business is limited
to the value of their investment
Term
Common shares
Definition
securities that corporation offer to the public, enabling the shareholder to become a part-owner of the corporation with the right to vote in the affairs of the corporation and a right to share in its distributed profits
Term
Preferred shares
Definition
stock issued by a corporation that shows ownership of the company, while you would not have the right to vote you would be guaranteed a fixed return of dividend on your investment
Term
Bonds
Definition
a written promise to pay a stated sum of money at some time in the future
with interest paid on stated dates
Term
Stock exchange
Definition
an organized market where listed stocks can be bought and sold
Term
Assets
Definition
all of those things that the corporation owns or is owned including current, fixed, and intangible
Term
Liabilities
Definition
all of the debts of the corporation
Term
Current liabilities
Definition
debts that are payable including bank loans, and income taxes
Term
Long-term liabilities
Definition
debts that are payable by the corporation which would include bonds
Term
Shareholders’ equity
Definition
the interest of the shareholders in a corporation if all of its liabilities were paid off consisting of two main parts; capital stock and retained earnings
Term
Capital stock
Definition
money raised by the sales of share in the corporation
Term
Retained earnings
Definition
profits of the firm that have been reinvested in the business
Term
Current assets
Definition
cash and anything that can be turned into cash in a year (raw
materials, parts, bonds)
Term
Fixed assets
Definition
includes land, buildings, machinery, trucks, with allowance being made for depreciation
Term
Intangible assets
Definition
includes such assets as patents
Term
Balance sheet
Definition
basic financial statement in an annual report showing the company’s financial position on a specific date, usually the last day of the
company’s fiscal year
Term
Income Statement
Definition
part of the annual report that shows the source of the company’s income and its expenditures
Term
Depreciation
Definition
the decline in value of assets such as machinery and vehicles due to new technology or to wear and tear
Term
Net Sales
Definition
the total amount the company earns from the sales of goods and services
Term
Gross Profit
Definition
the difference between revenue and the cost of making a product or providing a service before deducting overheads such as payroll, taxation and interest payments.
Term
Net Profit
Definition
the amount that is left over after all of the costs have been met from the
income of a business, the actual profit
Term
Creditor
Definition
n entity, or company or a person of a legal nature that has provided goods,
services or a monetary loan to a debtor
Term
Privatization
Definition
the transfer of a business, industry, or service from public to private ownership and control Crown Corporation – federally or provincially owned corporations established to provide goods or services for the public, also known as public enterprises
Term
Broker
Definition
a person who buys and sells goods or assets for others.
Term
Appraisal
Definition
an expert estimate of the value of something
Term
Dow Jones Industrial Average (DOW)
Definition
shows general trends of stock market prices in the US based on the closing prices of the stock of thirty major US corporations from sectors considered most representative of the US economy
Term
Toronto Stock Exchange (TSX 300)
Definition
a composite index which measures changes in the prices of 300 leading and representative Canadian stocks.
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