Economic Chapter 8 Quiz 3

D

A ___________ is a combination of more than three businesses that makes unrelated products. A. corporation B. limited liability partnership C. partnership D. conglomerate

C

A certificate issued by a corporation promising to repay the amount it has borrowed is called A. a share. B. a stock. C. a bond. D. a dividend.

A

A share representing ownership in a corporation is called A. stock. B. interest. C. a bond. D. a dividend.

B

The joining of two or more firms competing in the same market with the same good or service is called A. a conglomeration. B. a horizontal merger. C. a vertical merger. D. a hostile takeover.

C

The portion of corporate profits paid out to stockholders is called A. a stock. B. a bond. C. a dividend. D. a fringe benefit.

B

What defines a corporation? A. A business that does international business. B. A business owned by individual stockholders. C. A large business firm. D. A business with more than two owners.

A

What does the limited liability of the owners of stock in a corporation mean? A. The stockholders of a corporation can lose only what they have invested in the corporation. B. The corporation is not responsible for the private debts of the owners of stock. C. The corporation can raise money by selling more shares of stock. D. The managers hired by the corporation are not responsible for the debts of the corporation.

C

What is a certificate of incorporation? A. The stocks representing a majority interest in a corporation. B. The taxes a stockholder must pay if he or she sells ownership in a corporation C. A license to form a corporation issued by the state government. D. An annual report filed by a corporation with the Securities and Exchange Commission.

C

What is the term for the joining of two or more firms involved in different stages of producing the same good or service? A. conglomerate B. closely held corporation C. vertical merger D. horizontal merger

D

What percentage of the net income earned in the United States is generated by corporations? A. 45 percent B. 84 percent C. 28 percent D. 70 percent