Economics Chapter 8.3-8.4
A group of city leaders decide to raise funds for a museum to honor the city's founder. What type of organization will they use for this purpose?
a nonprofit organization
Which of the following businesses is most likely to be a franchise?
a service station that specializes in oil changes
a contract issued by a corporation that promises to repay borrowed money, plus interest, on a fixed schedule
bond
the result of a merger of several companies, each one producing unrelated goods or services
conglomerate
a large corporation with branches in several countries
multinational corporation
What is a typical requirement of a consumer cooperative?
paying a membership fee
a corporation that controls who can buy or sell their stock
private company
the combining of companies involved in different steps of producing or marketing a product
vertical merger
the combining of two or more companies that produce the same product or similar products
horizontal merger
a business shared by shareholders, who own the rights to the company's profits but face limited liability
corporation
part of a corporation's profits that is paid out to stockholders
dividend
a corporation that issues stock that can be freely bought and sold
public company
Which of the following is a major advantage of owning a franchise?
selling a product that consumers know
What type of organization is a credit union?
service cooperative
shares of ownership in a corporation
stocks
