Media Industry Concepts

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What is a corporation?

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A corporation is a large company owned by shareholders and is a separate legal entity, meaning individuals are not responsible for the company's debts (limited liability).

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What is the liability status of smaller companies owned by individuals?

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Individuals who own smaller companies are liable for the company's debts.

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Are all companies corporations?

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No, all corporations are companies, but not all companies are corporations.

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What is a conglomerate?

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A conglomerate is a corporation made up of several different, independent businesses. It owns a controlling stake in smaller companies (subsidiaries) that conduct business operations separately.

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How can conglomerates be created?

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Conglomerates can be created through mergers or acquisitions.

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What is a monopoly in the context of conglomerates?

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A monopoly occurs when one conglomerate begins to dominate a market, restricting competition. Regulations are used to prevent this.

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What is an independent media company?

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An independent media company is a small production, marketing, or distribution company that operates as a single entity, unlike a conglomerate with subsidiaries.

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How do independent production companies distribute their products?

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Independent production companies need another company to help with distribution, unlike conglomerates that can distribute through subsidiaries.

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What is cross media promotion?

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Cross media promotion is when companies promote their products across different platforms, such as magazines and radio stations.

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What is cross media ownership?

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Cross media ownership allows companies to use different platforms to reach larger markets and protect the business if one market declines.