Chapter 8 Test

When two companies that produce the same kind of product merge, this is called a ____________ a) horizontal merger b) multinational merger c) vertical merger d) conglomeration

a) horizontal merger

Matching: situation in which a firm legally ceases to exist when an owner dies, quits, or sells the business a) limited life b) general partnership c) common stock d) preferred stock e) horizontal merger ab) incubator ac) crowdfunding ad) venture capitalist ae) credit union bc) labor union

a) limited life

Matching: place where entrepreneurs can receive the training and possibly financing to start a successful business a) limited life b) general partnership c) common stock d) preferred stock e) horizontal merger ab) incubator ac) crowdfunding ad) venture capitalist ae) credit union bc) labor union

ab) incubator

Matching: using a social network to appeal to potential investors a) limited life b) general partnership c) common stock d) preferred stock e) horizontal merger ab) incubator ac) crowdfunding ad) venture capitalist ae) credit union bc) labor union

ac) crowdfunding

Matching: lender of investment funds to a new or unproven business in exchange for partial ownership a) limited life b) general partnership c) common stock d) preferred stock e) horizontal merger ab) incubator ac) crowdfunding ad) venture capitalist ae) credit union bc) labor union

ad) venture capitalist

Matching: nonprofit service cooperative that accepts deposits from, and makes loans to, its members a) limited life b) general partnership c) common stock d) preferred stock e) horizontal merger ab) incubator ac) crowdfunding ad) venture capitalist ae) credit union bc) labor union

ae) credit union

Matching: all partners are equally responsible for management and debts a) limited life b) general partnership c) common stock d) preferred stock e) horizontal merger ab) incubator ac) crowdfunding ad) venture capitalist ae) credit union bc) labor union

b) general partnership

What is the main purpose of incubators? a) helping entrepreneurs think of new business ideas b) providing entrepreneurs with training to be successful c) helping entrepreneurs find investors d) both A and C

b) providing entrepreneurs with training to be successful

Which of the following is true about nonprofit organizations? a) the results of their efforts can be analyzed in the same way as for-profit businesses b) they work in a businesslike way to promote member interests c) most are informal businesses that are not incorporated d) they make up an insignificant part of the economy

b) they work in a businesslike way to promote member interests

A businesses net income is defined as ___________ a) total income before expenses b) total income after expenses c) total dividends paid to investors d) total income before sales

b) total income after expenses

Matching: organization that works for its members interests concerning pay, working hours, health coverage, fringe benefits, etc. a) limited life b) general partnership c) common stock d) preferred stock e) horizontal merger ab) incubator ac) crowdfunding ad) venture capitalist ae) credit union bc) labor union

bc) labor union

Matching: a form of corporate ownership giving one vote per share for stockholders a) limited life b) general partnership c) common stock d) preferred stock e) horizontal merger ab) incubator ac) crowdfunding ad) venture capitalist ae) credit union bc) labor union

c) common stock

A person who wishes to incorporate a business needs to ___________ a) find stockholders b) pat the government dividends c) file for permission with the government d) do all of the above

c) file for permission with the government

A venture capitalist´s main goal is usually to ___________ a) help individuals achieve their dreams b) help their communities c) get a good return on an investment d) teach entrepreneurs managerial skills

c) get a good return on an investment

Which of the following is true of both nonprofit organizations and for-profit corporations? a) they both pay income taxes b) they both pay dividends c) they both use scarce factors of production d) they both issue stock

c) they both use scarce factors of production

Which of the following is an advantage of sole proprietorship? a) there are almost no requirements to start it up b) the owner makes all the decisions c) the owner keeps all of the profits d) all of the above statements are true

d) all of the above statements are true

Matching: form of stock without vote, in which stockholders receive their dividends before common stockholders do a) limited life b) general partnership c) common stock d) preferred stock e) horizontal merger ab) incubator ac) crowdfunding ad) venture capitalist ae) credit union bc) labor union

d) preferred stock

A nonprofit organization that provides services to its members is called a ___________ a) consumer co-op b) producer co-op c) market co-op d) service co-op

d) service co-op

Limited life applies to _____________ a) corporations b) multinationals c) nonprofit organizations d) sole proprietorships

d) sole proprietorships

Matching: combination of firms producing the same kind of product a) limited life b) general partnership c) common stock d) preferred stock e) horizontal merger ab) incubator ac) crowdfunding ad) venture capitalist ae) credit union bc) labor union

e) horizontal merger