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