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Kevin Cutler - Bryant Economics p.3
Ms. Bryant's economics flashcards.
11
Economics
12th Grade
11/17/2010

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Term
BONHOLDER
Definition
The owner of a bond. In addition to receiving regular interest payments and the return of principal, bondholders are given precedence over stockholders in case of asset liquidation.
Term
MONOPOLY
Definition
exists when a specific individual or an enterprise has sufficient control over a particular product or service to determine significantly the terms on which other individuals shall have access to it
Term
MONOPOLISTIC
Definition
is a common market structure where many competing producers sell products that are differentiated from one another
Term
CORORATION
Definition
The most common form of business organization, and one which is chartered by a state and given many legal rights as an entity separate from its owners.
Term
DIVIDEND
Definition
A taxable payment declared by a company's board of directors and given to its shareholders out of the company's current or retained earnings, usually quarterly
Term
PURE COMPETITION
Definition
A market characterized by a large number of independent sellers of standardized products, free flow of information, and free entry and exit. Each seller is a "price taker" rather than a "price maker".

Term
LIMITED LIABILITY
Definition
is a concept whereby a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a company or partnership with limited liability. In other words, if a company with limited liability is sued, then the plaintiffs are suing the company, not its owners or investors.
Term
PURE OLIGOPOLY
Definition
when few producers dominate the production of on item
Term
STOCK HOLDER
Definition
One who owns shares of stock in a corporation or mutual fund. For corporations, along with the ownership comes a right to declared dividends and the right to vote on certain company matters, including the board of directors.
Term
COLLATERAL
Definition
Assets pledged by a borrower to secure a loan or other credit, and subject to seizure in the event of default. also called security
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