Chapter 8 - Business Orgs.

Front

A merger of two or more companies that are part of the same industry are known as:

Back

horizontal mergers

Front

Which of the following would be a disadvantage of owning a franchise? Well-known brand and product, Benefits of advertising, High entry costs and fees, Less likely to fail

Back

High entry costs and fees

Front

All of the following are disadvantages of a sole proprietorship EXCEPT: Full liability falls of the owner, The business ends when the owner dies or retires, Harder to raise money, Any profits do not have to be shared with a partner or shareholders

Back

Any profits do not have to be shared with a partner or shareholders

Front

As a business owner, which of these would not change regardless of your production?
Options: Variable costs, Marginal Costs, Fixed Costs, Total Costs

Back

Fixed Costs

Front

Over time, adding more and more workers will eventually lead to a decrease in production. What is this called?

Back

Diminishing returns

Front

Which of the following is NOT a conglomerate? Amazon, Disney, Johnson and Johnson, GM

Back

GM

Front

All of the following are reasons why companies might merge together EXCEPT: Faster growth, Synergy, Elimination of rivals

Back

Easier to manage

Front

Which of the following is an example of a vertical merger? T-Mobile merging with Sprint, IKEA buying forests, Facebook and Instagram, HP and Compaq

Back

IKEA buying forests

Front

Which of the following is used to calculate profit/loss? TC/Q, ATC/Marginal Product, TR-TC, TR x Q

Back

TR-TC

Front

If the activities of a nonprofit organization produce revenues, the organization uses the money to __________

Back

further its work