Introduction to Business test terms (March)

cooperative

a business consists of owners who join forces to collectively operate all or part of the functions in their industry

conglomerate merger

a merger of firms in unrelated industries

alien corporation

a type of business ownership formed in one country but that operates in another country

vertical merger

combines firms operating at different levels in the production and marketing process

business plan

having a _________ improves the chances of success for a new business by providing an orderly statement of a company's goals

acquisition

occurs when one firm purchases the property and assumes the obligations of another firm

preferred stock

owners of _______ have limited voting rights, but are entitled to the earliest dividends

corporation

the form of business ownership that establishes the firm as a separate legal entity

sole proproetorship

the form of business ownership that is least subject to legal red tape

merger

two or more firms combine to form one company

small business

independently owned and operated and is responsible for more than half of the nation's gross domestic product

franchising

is a contractual agreement that specifies the methods by which a dealer can produce and market a supplier's good or service

horizontal merger

joins firms in the same industry that wish to diversify, increase their customer base, cut costs, or offer expanded product lines

business incubators

small start up ventures looking for low cost shared facilities can utilize this, which is offered by local community agencies