Chapter 8 Economy Essay

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a large corporation that produces and sells its goods and services throughout the world is called a
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multinational corporation
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a partnership in which only one partner is required to be a general partner is called a
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limited partnership
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money and other valuables belonging to an individual or business are called
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assets
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the combination of two or more firms involved in different stages of producing the same good or service is called a
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vertical merger
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a business organization owned and operated by a group of individuals for their mutual benefit is called a
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cooperative
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a legal entity owned by individual stockholders is called a
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corporation
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the legal document spelling out the details of a partnership agreement are called
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articles of partnership
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an establishment formed to carry on commercial enterprise is called a
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business organization
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a share of the earnings given as payment to a franchiser is called a
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royalty
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a partnership in which partners share equally in both responsibility and liability is called a
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general partnership
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a agricultural marketing cooperative that helps members sell their products is called a
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producer cooperative
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a license to form a corporation issued by a state government is called a
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certificate of incorporation
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a business owned and managed by a single individual is called a
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sole proprietorship
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a business combination merging more than three businesses that make unrelated products is called a
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conglomerate
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a cooperative that provides a service rather than a good is called a
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service cooperative
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a partnership in which all partners are limited partners is called a
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limited liability partnership
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the portion of corporate profits paid out to stockholders are called
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dividends
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the combination of two or more firms competing in the same market with the same good or service is called a
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horizontal merger
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a corporation that sells stock on the open market is called a
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publicly held corporation
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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
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the uniform partnership act
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a corporation that issues stock to only a few people, often family members is called a
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closely held corporation
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the legally bound obligation to pay debts is called
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liability
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a formal contract to repay borrowed money with interest at fixed intervals is called a
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bond
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an institution that functions much like a business but does not operate for the purpose of generating profits is called a
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nonprofit organization
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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
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business franchise
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a certificate of ownership in a corporation is called
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stock
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a business organization owned by two or more persons who agree on a specific division of responsibilities is called a
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partnership
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a law in a city or town that designated areas for residency and for business is called a
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zoning law
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the authorization to start a business issued by the local government is called a(n)
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business license
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a payment other than wages or benefits is called
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a fringe benefit
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a retail outlet owned and operated by consumers is called a
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consumer cooperative
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if a general partnership fails, who is responsible for the debts
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all of the partners
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what are royalties
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a percentage of a franchise’s earnings paid to the parent company
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what does limited liability of the owners of stock in a corporation mean
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the stockholders of a corporation can lose only what they have invested in the corporation
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the function of a retail or purchasing cooperative business or “Co-op” is to
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obtain lower prices for its members
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which of the following characteristics does a nonprofit organization NOT have
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profits
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a major disadvantage of the sole proprietorship is that
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banks are often unwilling to lend money to the business
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which of the following is a disadvantage of a sole proprietorship
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lack of permanence
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what is the major difference between a corporation and other kinds of busninesses
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a corporation has a separate entity apart from that of the owners and workers
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which of the following is an advantage of a sole proprietorship
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it is the least regulated form of business organization
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an example of a nonprofit organization is a
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school
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corporation raise large sums of money by
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selling stock in the company, borrowing money, selling bonds
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in return for a fee to a franchiser, a business owner receives the right
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to sell the franchiser’s goods and services
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which type of business organization faces double taxation
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corporations
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an advantage of a merger between two companies is
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improved production and efficiency
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all of the following are major advantages of a sole proprietorships EXCEPT
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unlimited personal liability
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all of the following are true of multinational corporations EXCEPT
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multinationals are a type of business organization that has no weakness
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which of the following is an example of a merger
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a company combines with a company that supplies it with raw materials
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what is a major reason for conglomerate mergers
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diversifiation
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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
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vertical merger
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a common factor in all nonprofit businesses is that they
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perform charitable acts
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why is it easier for a partnership to borrow money and to hold good employees than it is for sole proprietorship to do so
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a partnership has more personal stability and access to more moeny
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one advantage enjoyed by a corporation is
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limited liability
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what type of economic institution engages in collective bargaining
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labor unions
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which type of business organization faces the most government regulation
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corporation
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what are organizations that are in the business or benefiting society and operate like a business called
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nonprofit orgainzation
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multinationals are different from other corporations in that they
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are citizens of several nations at the same time
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what is a fringe benefit
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a payment other than wages or salaries
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a sole proprietor
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does not have to pay a separate business tax
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which of the following is a business organzation owned by a group of people for their mutual benefit
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a cooperative
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which of the following is NOT a common reason for a business combintaton
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a business wants to change its name
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which of the following is NOT characteristic of the corporate form of organization
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unlimited liability
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museums, public schools and YMCAs are all
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exempt from paying income taxes
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a business fails and the owners lose their investment in the company, along with their homes, automobiles, and other personal property. the owners are
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general partners in a general partnership
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the securities and exchange commission (SEC) supervises and regulates the
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sale of corporate stock to the public
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what are the money and other valuables that belong to a corporation or partnership called
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assets
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the legal obligation is pay debts is called
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liability
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all of the following are major advantages of sole proprietorship except
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unlimited personal liability
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an authorization from the local government to carry on an enterprise is called
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a business license
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an arrangement whereby cities and towns designate separate areas for business is called
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a zoning law
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a major disadvantage of sole proprietorship is that
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banks are often unwilling to lend money to the business
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a major advantage of sole proprietorship is that
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the owner is completely responsible for the business decisions
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a payment to employees other than wages or salaries is called
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a fringe benefit
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a business owned and managed by a single individual is called
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a sole proprietorship
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any establishment formed to carry on commercial enterprises is a
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business organization
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if a sole proprietorship fails the owner of the business
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must pay all the business debts
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the ______ is the state law that establishes rules for partnerships
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uniform partnership act
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what are assets
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money and other valuables
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a legal agreement that sets out each person’s rights and responsibilities in a particular partnership is called
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the articles of partnership
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how is general partnership organized
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every partner shares equally in both responsibility and liability
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a business in which all partners share in both responsibility and liability is called
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general partnership
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a business in which all partners are limited from personal liability in certain situations is called a
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limited liability partnership
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what percentage of all businesses are partnerships
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7 percent
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what is the difference between a limited partnership and a limited liability partnership
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in a limited liability partnership all partners are limited from liability in some situations
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what is the major advantage of a business that is a partnership rather than a sole proprietorship
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the responsibility for the business is shared
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a business in which only one person has unlimited personal liability for the business’s actions is called
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limited partnership
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the portion of corporate profits paid out to stockholders is called
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a dividend
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a certificate issued by a corporation promising to repay the amount it has borrowed is called
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a bond
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what does the limited liability of the owners of stock in a corporation mean
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the stockholders of a corporation can lose only what they have invested in the corporation
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what is the term for the joining of two or more firms involved in different stages of producing the same good or service
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vertical merger
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what defines a corporation
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a business owned by individual stockholders
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what percentage of the net income earned in the united states is generated by corporations
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70 percent
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what is a certificate of incorporation
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a license to form a corporation issued by the state government
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a _______ is a combination of more than three businesses that makes unrelated products
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conglomerate
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a share representing ownership in a corporation is called
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stock
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the joining of two or more firms competing in the same market with the same good or service is called
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a horizontal merger
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an agricultural marketing organization that helps members sell their products is called
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a producer cooperative
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the function of a retail or purchasing cooperative business or “co-op” is to
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obtain lower prices for members
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a nonprofit organization that promotes the interest of a particular industry is called a
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trade association
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all of the following are disadvantages of a franchise business EXCEPT
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the parent company’s guidance on running the business
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an organization that attempts to improve the image and working conditions of people in a particular occupation is a
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professional organization
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a semi-independent business that pays fees to a parent company for the exclusive right to do business in a certain area is called
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a business franchise
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a ________ is a retail outlet owned and operated by its members
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consumer cooperative
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the share of earnings that a business owner pays for the right to be part of a certain business are
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royalties
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organizations such as museums the red cross and churches that promote a benefit to society are called
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nonprofit organizations

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