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