question

a large corporation that produces and sells its goods and services throughout the world is called a

answer

multinational corporation

question

a partnership in which only one partner is required to be a general partner is called a

answer

limited partnership

question

money and other valuables belonging to an individual or business are called

answer

assets

question

the combination of two or more firms involved in different stages of producing the same good or service is called a

answer

vertical merger

question

a business organization owned and operated by a group of individuals for their mutual benefit is called a

answer

cooperative

question

a legal entity owned by individual stockholders is called a

answer

corporation

question

the legal document spelling out the details of a partnership agreement are called

answer

articles of partnership

question

an establishment formed to carry on commercial enterprise is called a

answer

business organization

question

a share of the earnings given as payment to a franchiser is called a

answer

royalty

question

a partnership in which partners share equally in both responsibility and liability is called a

answer

general partnership

question

a agricultural marketing cooperative that helps members sell their products is called a

answer

producer cooperative

question

a license to form a corporation issued by a state government is called a

answer

certificate of incorporation

question

a business owned and managed by a single individual is called a

answer

sole proprietorship

question

a business combination merging more than three businesses that make unrelated products is called a

answer

conglomerate

question

a cooperative that provides a service rather than a good is called a

answer

service cooperative

question

a partnership in which all partners are limited partners is called a

answer

limited liability partnership

question

the portion of corporate profits paid out to stockholders are called

answer

dividends

question

the combination of two or more firms competing in the same market with the same good or service is called a

answer

horizontal merger

question

a corporation that sells stock on the open market is called a

answer

publicly held corporation

question

a uniform state law adopted by most states to establish rules for partnerships such as common ownership interests, profit and loss sharing and shared management responsibilities is called

answer

the uniform partnership act

question

a corporation that issues stock to only a few people, often family members is called a

answer

closely held corporation

question

the legally bound obligation to pay debts is called

answer

liability

question

a formal contract to repay borrowed money with interest at fixed intervals is called a

answer

bond

question

an institution that functions much like a business but does not operate for the purpose of generating profits is called a

answer

nonprofit organization

question

a semi independent business that pays fees to a parent company in return for the exclusive right to sell a certain product or service in a given area is called a

answer

business franchise

question

a certificate of ownership in a corporation is called

answer

stock

question

a business organization owned by two or more persons who agree on a specific division of responsibilities is called a

answer

partnership

question

a law in a city or town that designated areas for residency and for business is called a

answer

zoning law

question

the authorization to start a business issued by the local government is called a(n)

answer

business license

question

a payment other than wages or benefits is called

answer

a fringe benefit

question

a retail outlet owned and operated by consumers is called a

answer

consumer cooperative

question

if a general partnership fails, who is responsible for the debts

answer

all of the partners

question

what are royalties

answer

a percentage of a franchise's earnings paid to the parent company

question

what does limited liability of the owners of stock in a corporation mean

answer

the stockholders of a corporation can lose only what they have invested in the corporation

question

the function of a retail or purchasing cooperative business or "Co-op" is to

answer

obtain lower prices for its members

question

which of the following characteristics does a nonprofit organization NOT have

answer

profits

question

a major disadvantage of the sole proprietorship is that

answer

banks are often unwilling to lend money to the business

question

which of the following is a disadvantage of a sole proprietorship

answer

lack of permanence

question

what is the major difference between a corporation and other kinds of busninesses

answer

a corporation has a separate entity apart from that of the owners and workers

question

which of the following is an advantage of a sole proprietorship

answer

it is the least regulated form of business organization

question

an example of a nonprofit organization is a

answer

school

question

corporation raise large sums of money by

answer

selling stock in the company, borrowing money, selling bonds

question

in return for a fee to a franchiser, a business owner receives the right

answer

to sell the franchiser's goods and services

question

which type of business organization faces double taxation

answer

corporations

question

an advantage of a merger between two companies is

answer

improved production and efficiency

question

all of the following are major advantages of a sole proprietorships EXCEPT

answer

unlimited personal liability

question

all of the following are true of multinational corporations EXCEPT

answer

multinationals are a type of business organization that has no weakness

question

which of the following is an example of a merger

answer

a company combines with a company that supplies it with raw materials

question

what is a major reason for conglomerate mergers

answer

diversifiation

question

a joining of two or more businesses that are involved in different stages of producing the same good or service is called which of the following

answer

vertical merger

question

a common factor in all nonprofit businesses is that they

answer

perform charitable acts

question

why is it easier for a partnership to borrow money and to hold good employees than it is for sole proprietorship to do so

answer

a partnership has more personal stability and access to more moeny

question

one advantage enjoyed by a corporation is

answer

limited liability

question

what type of economic institution engages in collective bargaining

answer

labor unions

question

which type of business organization faces the most government regulation

answer

corporation

question

what are organizations that are in the business or benefiting society and operate like a business called

answer

nonprofit orgainzation

question

multinationals are different from other corporations in that they

answer

are citizens of several nations at the same time

question

what is a fringe benefit

answer

a payment other than wages or salaries

question

a sole proprietor

answer

does not have to pay a separate business tax

question

which of the following is a business organzation owned by a group of people for their mutual benefit

answer

a cooperative

question

which of the following is NOT a common reason for a business combintaton

answer

a business wants to change its name

question

which of the following is NOT characteristic of the corporate form of organization

answer

unlimited liability

question

museums, public schools and YMCAs are all

answer

exempt from paying income taxes

question

a business fails and the owners lose their investment in the company, along with their homes, automobiles, and other personal property. the owners are

answer

general partners in a general partnership

question

the securities and exchange commission (SEC) supervises and regulates the

answer

sale of corporate stock to the public

question

what are the money and other valuables that belong to a corporation or partnership called

answer

assets

question

the legal obligation is pay debts is called

answer

liability

question

all of the following are major advantages of sole proprietorship except

answer

unlimited personal liability

question

an authorization from the local government to carry on an enterprise is called

answer

a business license

question

an arrangement whereby cities and towns designate separate areas for business is called

answer

a zoning law

question

a major disadvantage of sole proprietorship is that

answer

banks are often unwilling to lend money to the business

question

a major advantage of sole proprietorship is that

answer

the owner is completely responsible for the business decisions

question

a payment to employees other than wages or salaries is called

answer

a fringe benefit

question

a business owned and managed by a single individual is called

answer

a sole proprietorship

question

any establishment formed to carry on commercial enterprises is a

answer

business organization

question

if a sole proprietorship fails the owner of the business

answer

must pay all the business debts

question

the ______ is the state law that establishes rules for partnerships

answer

uniform partnership act

question

what are assets

answer

money and other valuables

question

a legal agreement that sets out each person's rights and responsibilities in a particular partnership is called

answer

the articles of partnership

question

how is general partnership organized

answer

every partner shares equally in both responsibility and liability

question

a business in which all partners share in both responsibility and liability is called

answer

general partnership

question

a business in which all partners are limited from personal liability in certain situations is called a

answer

limited liability partnership

question

what percentage of all businesses are partnerships

answer

7 percent

question

what is the difference between a limited partnership and a limited liability partnership

answer

in a limited liability partnership all partners are limited from liability in some situations

question

what is the major advantage of a business that is a partnership rather than a sole proprietorship

answer

the responsibility for the business is shared

question

a business in which only one person has unlimited personal liability for the business's actions is called

answer

limited partnership

question

the portion of corporate profits paid out to stockholders is called

answer

a dividend

question

a certificate issued by a corporation promising to repay the amount it has borrowed is called

answer

a bond

question

what does the limited liability of the owners of stock in a corporation mean

answer

the stockholders of a corporation can lose only what they have invested in the corporation

question

what is the term for the joining of two or more firms involved in different stages of producing the same good or service

answer

vertical merger

question

what defines a corporation

answer

a business owned by individual stockholders

question

what percentage of the net income earned in the united states is generated by corporations

answer

70 percent

question

what is a certificate of incorporation

answer

a license to form a corporation issued by the state government

question

a _______ is a combination of more than three businesses that makes unrelated products

answer

conglomerate

question

a share representing ownership in a corporation is called

answer

stock

question

the joining of two or more firms competing in the same market with the same good or service is called

answer

a horizontal merger

question

an agricultural marketing organization that helps members sell their products is called

answer

a producer cooperative

question

the function of a retail or purchasing cooperative business or "co-op" is to

answer

obtain lower prices for members

question

a nonprofit organization that promotes the interest of a particular industry is called a

answer

trade association

question

all of the following are disadvantages of a franchise business EXCEPT

answer

the parent company's guidance on running the business

question

an organization that attempts to improve the image and working conditions of people in a particular occupation is a

answer

professional organization

question

a semi-independent business that pays fees to a parent company for the exclusive right to do business in a certain area is called

answer

a business franchise

question

a ________ is a retail outlet owned and operated by its members

answer

consumer cooperative

question

the share of earnings that a business owner pays for the right to be part of a certain business are

answer

royalties

question

organizations such as museums the red cross and churches that promote a benefit to society are called

answer

nonprofit organizations

Chapter 8 Economy – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards