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HEDGE FUND: A mutual fund that relies heavily on hedging practices to protect the value of the financial assets. Such a fund specializes in options, futures, and other financial instruments that provide insurance protection against price fluctuations, and thus limits the risk of loss.

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Lesson 13: The Firm | Unit 3: Legal Types Page: 15 of 24

Topic: Corporation <=PAGE BACK | PAGE NEXT=>

  • A corporation:
    A corporation is a firm this is a distinct legal entity that exists separately from its owners. A corporation issues ownership shares reflecting the extent of ownership interest and of liability. A corporation is considered a distinct legal entity apart from the owners.

  • Let's consider the good and bad of corporations.

    • Advantages: The good that makes corporation stand head and shoulders above proprietorship and partnership is limited liability.

    • Disadvantages: The bad of a corporation, especially when it has millions of owners, is the separation of ownership and control.

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NATURAL UNEMPLOYMENT

The combination of frictional and structural unemployment that persists in an efficient, expanding economy when labor and resource markets are in equilibrium. Natural unemployment exists when the economy is at full employment, which for practical purposes is defined as the condition in which the quantity of resources demanded is equal to the quantity of resources supplied. Most important for policy purposes, natural employment exists with stable prices, that is, no inflation.

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APLS

ORANGE REBELOON
[What's This?]

Today, you are likely to spend a great deal of time searching for a specialty store seeking to buy either looseleaf notebook paper or a three-hole paper punch. Be on the lookout for cardboard boxes.
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This isn't me! What am I?

In the early 1900s around 300 automobile companies operated in the United States.
"It is very rare that you meet with obstacles in this world (that) the humblest man has not the faculties to surmount. "

-- Henry David Thoreau, philosopher

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