UNIT 2 Econ test review questions – Flashcards
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What is the most common form of business organization in the US?
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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 a
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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 stock
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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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IF a person is fully responsible for all the losses and debts of a business, they have
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unlimited liability
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A govt. document granting permission to create a corporation is a
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charter
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When two or more businesses combine to form one firm
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merger
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Merger that takes place when two or more firms that produce the same product combine
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horizontal merger
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Merger that takes place when two or more firms that represent different steps in the production of a product join forces
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horizontal combination
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A corporation that has its manufacturing or service operations in a number of different countries is called a
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multinational
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A firm that has at least four business, each making unrelated products, none of which is responsible for the majority of sales
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conglomerate
