Econ 3 – Flashcards
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Tax breaks, move towards less regulation
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How do states, countries or cities try to attract businesses today
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Reinvesting profit, merger
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What are the two ways in which businesses can grow
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Income statement
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What is a report showing a businesses sales, expenses and profits
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Net income/profit/cash flow
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What is the total amount of new funds the business generated from operations
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Merger
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What is a combination of two or more businesses to form a single firm
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Vertical, horizontal
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What are the two types of mergers
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Horizontal
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Which type of merger involves firms that pro ice the same kind of product join forces
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To become bigger or more efficient
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Why can mergers accure
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Tax breaks, move towards less regulation
answer
How do states, countries or cities try to attract businesses today
question
Reinvesting profit, merger
answer
What are the two ways in which businesses can grow
question
Income statement
answer
What is a report showing a businesses sales, expenses and profits
question
Net income/profit/cash flow
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What is the total amount of new funds the business generated from operations
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Merger
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What is a combination of two or more businesses to form a single firm
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Vertical, horizontal
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What are the two types of mergers
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Horizontal
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Which type of merger involves firms that pro ice the same kind of product join forces
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To become bigger or more efficient
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Why can mergers accure
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Sole proprietorship
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Which type of business is owned and run by one person?
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Sole proprietorship
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What is the most common form of business organization in the U.S.
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Easy to start Easy decisions
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List two advantages of a sole propietorship
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Unlimited liability Difficulty raising financial capital
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List two disadvantages of a sole proprietorship
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unlimited liability
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Which term refers to the idea that an owner is personally and financially responsible for all losses that a business incurs?
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Partnership
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Which type of business is jointly owned by two or more persons?
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Partnership
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What is the least common form of business organization in the U.S.
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2
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How many types of partnerships are there?
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General
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Which is the most common type of partnership?
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Limited
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In which type of partnership is at least one partner not active in the daily running of the business?
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Articles of pertnership
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What name is given to the legal papers stating how profits and losses will be divided in a partnership?
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easy start no special taxes
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List two advantages to forming a pertnership
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limited life conflict
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List two disadvantages of forming a partnership
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corporation
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Which type of business is recognized by law as being its own separate legal entity
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easy to raise financial capital easy to transfer ownership
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List two advantages of forming a corporation
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difficult and expensive to get a charter more goverment regulation
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List two disadvantage of forming a corporatioin
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issue bonds sell more stock
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What are two ways in which corporations can raise financial capital
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charter
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What is the legal document that grants permission for a corporation to be formed called
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national state government
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Who or what must grant permission for a corporation to be formed
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stock
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What do we call ownership certificates in a firm
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stock holders share holders
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Stock is sold to investors who are called either ______ of _______
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dividen
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What name is given to the money investors receive if the corporation is profitable
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perfered
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What are the two types of stock that are available to investors
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perfered
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Which type of stock is leash risky
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sole proprietorship
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A business owned and run by one person
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limited partnership
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business organization in which at least one partner is not active in the daily running of the business
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corporation
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business organization recognized by law as a separate legal entity having all the rights of an individual
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bankruptcy
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a court-granted permission to an individual or business to cease or delay debt payment
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sole proprietorship
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what is the most common form of business organization in the United States
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ease of raising financial capital
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What is the main strength of corporate form of business organization
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charter
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A government document granting permission to create a corporation is called a _____
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common stock
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Basic ownership of a corporation, including voting rights, takes the form of _____
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depreciation
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a non-cash charge of firm takes for the general wear and tear on its capital goods
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multinational
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a corporation that has operation in a number of different contries
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net income
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determined by subtracting expenses, including taxes, from revenue
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vertical merger
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business combination of firms involved in different steps of manufacturing or marketing
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merger
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a combination of two or more businesses to form a single firm
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conglomerate
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A corporation that has at least four businesses, each making unrelated products, none of which is responsible for a majority of its sales, is called a _____
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two or more firms that produce the same kind of product
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Horizontal mergers involve
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True
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A multinational is often a conglomerate (True of False)
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Mergers
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What is important for their ability to move resources, products, and financial capital across national boundaries with relative ease?
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diversification
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What is a major reason for conglomerate mergers?
