Econ Ch. 3 - Business Organizations

Front

What is the most common form of business organization in the United States?

Back

sole proprietorship

Front

What is the main strength of the corporate form of business organization? Options: ease of raising financial capital, ease of management, ease of establishment, freedom from business income taxes

Back

ease of raising financial capital

Front

A government document granting permission to create a corporation is called a

Back

charter

Front

Basic ownership of a corporation, including voting rights, takes the form of a

Back

Common stock.

Front

All of the following are strengths of the partnership form of business organization EXCEPT: Limited life, Ease of establishment, Lack of special taxes, Ease of management

Back

Limited life

Front

What is an example of a state government offering incentives to bring a new industry to their state?

Back

Michigan offering tax breaks to the movie industry to come to Michigan

Front

The government creating a business that competes with other privately owned businesses to sell a good or service is an example of a(an)

Back

Direct role of government

Front

A corporation that has at least four businesses, each making unrelated products, none of which is responsible for a majority of its sales, is called a 

Back

Conglomerate

Front

Illitch Holdings owns the Tigers, Red Wings, Little Caesars, and Olympia Entertainment. These are four unrelated businesses making Illitch Holdings a

Back

conglomerate

Front

Horizontal mergers involve

Back

Two or more firms that produce the same type of product