Economics chapter 3 Questions

which of the following is an example of professional association?

American Medical Association

Which of the following is an example of service cooperative?

Greenville Teachers Credit Union

explain how the government plays both a direct and an indirect role in the economy

Indirect is social security and direct is the FDIC

which letter represents the proper location on the diagram for unlimited liability ?

W

which of the following statements are true?

a multinational is often a conglomerate

a government document granting permission to create a corporation is called a ?

charter

Basic ownership of a corporation, including voting rights, takes the form of?

common stock

a corporation that has at least four businesses, each making unrelated products, none of which is responsible for a majority of its sale is called a?

conglomerate

which are noted for their ability to move resources, products, and financial capital across national boundaries with relative ease?

multinationals

According to the illustration on the previous page, what is the least common form of business organization in the united states?

partnerships

horizontal mergers involve two or more firms that do what?

produce the same kind of product

the local chamber of commerce works to

promote the welfare of its member businesses and the community

non profit organizations may do what?

provide goods and services to members

what is the main reason that government controls are needed on public utilities?

public utilities usually have no competition

which best illustrates indirect role of government?

regulation of public utilities

This regulates the sale of stock in a corporation

securities and exchange commission

What is the most common form of business organization in the United States ?

sole proprietorship

Unlike a general partnership, in a limited partnership

the inactive partner has limited liability for the businesses debts

Where does the amount of non-cash come from?

depreciation

what is a major reason for conglomerate mergers?

diversification

What is the main disadvantage of the general partnership form of business organization

each partner is fully responsible for the acts of all other partners

What is the main advantage of the corporate form of business organization?

ease of raising financial capital