Chapter 8 Section 3

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multinational corporation (MNC)

large corporation that produces and sells its goods and services throughout the world

certificate of incorporation

license to form a corporation issued by state government

horizontal merger

the combo of two or more firms competing in the same market with the same good or service

vertical merger

the combo of two or more firms involved in different stages of producing the same good or service

dividend

the portion of corporate profits paid out to stockholders

stock

a certificate of ownership in a corporation

bond

a formal contract to repay borrowed money with interest at fixed intervals

corporation

a legal entity owned by individual stockholders

conglomerate

business combo merging more than three businesses that make unrelated products

closely held corporation

corporation that issues stock to only a few people, often family members

publicly held corporation

corporation that sells stock on the open market


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