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GLOSSARY

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1. access(n.)-the means of getting to something.

e.g. A corporation has a greater access to capital than does a sole proprietor.

2. agreement (n.) - contract between two parties where one party makes an offer, and the other party accepts it.

e.g. The agreement has been reached and signed by the parties.

3. articles of co-partnership -the agreement telling the terms and conditions of partnership.

e.g. The articles of co-partnership should also provide a method of selling the businesses.

4. articles of incorporation -the agreement telling the terms, conditions and purposes of a corporation. These must be filed in the state where the corporation is chartered.

e.g. My lawyer will draw up the articles of incorporation.

5. asset(n.)-(often plural) anything of value to a company. Anything which can be sold or converted into cash.

e.g. The partners each own a share of the assets of the partnership. Inventory is a current asset because it will be sold during that business year.

6. bankrupt(v.)-unable to pay one's debts and legally released from the liability.

e.g. His business went bankrupt because of poor management and bad financial

7. bills(n.)-debts; money which must be paid to someone for a service or product received.

e.g. The bill for my telephone service arrives today. Most suppliers want you to pay the bill within thirty days.

8. board of directors -a group of persons elected by stockholders to run a corporation.

e.g. The board of directors has decided to pay a dividend of $5 per share

9. capital(n.)- the money which owners or stockholders invest in a business.

e.g. We need some capital in order to purchase new production equipment .

10. chief executive officer (CEO) - the top manager or director of a company .

e.g. The board of directors has hired a new chief executive officer for the corporation.

11. comply with(v.)- obey.

e.g. The corporation must comply with all the regulations which pertain to it.

12. corporation(n.)-a group of persons granted a charter to do business as a separate unit.



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e.g. Large businesses are operated as corporations because capital can be easily.

13. debt (n.) - an amount of money which must be paid to someone.

e.g. By selling his business he was able to pay off all his debts.

14. dissolve (v.)-to break up a partnership or corporation.

e.g. The partnership was dissolved because the two partners wanted to have their own businesses.

15. dividends(n.)-a share of the profits of a corporation which is given to the stockholders.

e.g. The dividend will be paid to owners of record on June 30.

16. enterprise(n.)-a business, particularly one privately owned.

e.g. If the sole proprietor wants to quit,he can simply find someone to purchase his enterprise.

17. entity(n.) -a separate unit for ownership or legal purposes.

e.g. As a separate entity a corporation can own property apart from the individual stockholders.

18. expertise(n.)-special knowledge or ability.

e.g. This accountant has expertise in financial planning.

19. goods (n.) - items which can be moved and are for sale.

e.g. Consumer good are goods bought by the general public and not by businesses.

20. income (n.) - money which person receives as salary or dividends.

e.g This year his income is higher than the previous year.

21. income tax -a tax which is based on the amount of money a person or company receives for labor, services, or products, and which cannot be added to the price of the labor, services, or products .

e.g.The owner of a sole proprietorship pays personal income tax on the profit he receives. The business itself pays no tax.

22. inventory(n.)-the amount of goods, merchandise, or materials on hand.

e.g. Once each year the owners of the store must record all their inventory in order to know which goods they have on hand. Some new computerized cash registers are able to keep track of inventory

23. liability(n.)-(often plural) debt or legal responsibility.

e.g. The assets and liabilities of the company must be listed on the balance sheet. The liability of a corporation is limited to its assets. The sole proprietor has all the liabilities of his business.

24. limited(adj.) - restricted; not allowed to exceed a certain amount.

e.g. A corporation's liability is limited to the value of its assets.

25. ownership(n.)-refers to a right a person has to things that belong to him.

e.g. The ownership of a sole proprietorship can be transferred if the proprietor wants to sell it. In order to sell a car, you must have an ownership certificate. Private ownership of property is an American tradition.

26. partnership(n.)-a business owned by two or more individuals.

e.g. The owners of a partnership share in the operation and profits of the business.

27. profits(n.) - the amount of income above costs.

e.g. The profits have increased due to a decrease in the cost of raw materials.

28. proprietorship(n.)-ownership of a small business.

e.g. This restaurant is operated as a sole proprietorship. It is owned by one individual.

29. purchase(v.) -buy.

e.g.The individual owner can decide whether or not to purchase new tools and equipment.

30. raise capital (v.) - to get money or to organize a credit.

e.g. The company is trying to raise the capital to fund its expansion.

31. share (n.) - one of many parts into which a company's capital is divided and owned by the shareholders.

e.g. He bought a blocks of shares offered by this company.

32. share (v.) - to own or use something together with someone else.

e.g. Three companies share the market.

33. tax (n., v.) - money taken by the government to pay for government services.

with its own rights and responsibilities.

e.g. Tax inspector is an official who decides how much tax someone should pay.

 



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Exercise 12 | Match the words with their definitions.

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