Economics Chapter 3 – Quiz 3 – Flashcards
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What is the most common form of business organization in the U.S.
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Sole proprietorship
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What is the main strength of the corporate form of business organization
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ease of raising financial capital
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a government document granting permission to create a corporation is called
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charter
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basic ownership of a corporation, including voting rights, takes the form of
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common stocks
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all of the following are strengths of the partnership form of business organization EXCEPT
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Limited life
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merger
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combination of two or more business enterprises to form a single firm
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net income
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The difference between total revenue and total expenses when total revenue is greater.
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vertical merger
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combination of firms involved in different steps of manufacturing or marketing
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depreciation
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the loss of the value of capital equipment that results from normal wear and tear
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sole proprietorship
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business owned by one person
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multinational
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a corporation that has manufacturing or service operations in a number of different countries
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limited life
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A firm that legally ceases to exist when the owner dies, quits, or sells the business
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corporation
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a business firm whose articles of incorporation have been approved in some state
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limited partnership
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partnership in which only one partner is required to be a general partner
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bankruptcy
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financial failure caused by an inability to pay one's debts
