Chapter 8 Test "Types of Business Organizations"

Front

Sole proprietors have ____________, a situation in which a business owner is responsible for all the losses, debts, and other claims against the business.

Back

unlimited liability

Front

A _________ acts like business, but its purpose is to benefit society.

Back

Nonprofit organization

Front

A __________ takes place when firms involved in different steps of manufacturing or marketing come together.

Back

vertical merger

Front

A __________ is a form of business organization recognized by law as a separate legal entity having all the rights of an individual. It has the right to buy and sell property, enter into legal contracts, and sue and be sued.

Back

corporation

Front

What is a cooperative?

Back

a business operated for the shared benefit of its owners, who are also its customers

Front

Which of the following is an example of a vertical merger?

• A shirt factory acquires a button manufacturer.
• A computer maker acquires a publisher.
• A Chinese company acquires a U.S. company.
• A bread bakery acquires a cookie company.

Back

A shirt factory acquires a button manufacturer.

Front

What is it called when companies that produce the same product merge?

Back

horizontal merger

Front

What is a dividend?

Back

the part of the corporate profits paid to a stockholder

Front

Which of the following is a corporation that issues stock that can be freely bought and sold? multinational corporation, nonprofit corporation, private corporation, public corporation

Back

public corporation

Front

What is the name for an individual who owns a share of a corporation and is entitled to part of its profits?

Back

stockholder