ECONOMICS: UNIT 3 "Business Organization"

The sole proprietorship is the most commonly found form of business organization in the U.S.

• True
• False

A merger of corporations involved in different steps of manufacturing or marketing is known as a

• multinational merger
• horizontal merger
• vertical merger
• conglomerate

One advantage to creating a corporation is double taxation.

• true
• false

Which letter represents the proper location on the diagram for “unlimited liability”?

• T
• W
• V
• Y

a firm legally ceases to exist when an owner dies, quits, or sells the business

• nonprofit organization
• collective bargaining
• credit union
• limited life

ownership certificates in a firm

• collective barganing
• charter
• stock
• dividend

organization that promotes the collective interests of its members rather than seeking financial gain for its owners

• limited life
• nonprofit organization
• proprietorship
• partnership

negotiation by a labor union with management over issues such as pay, working hours, health care coverage, and vacation

• collective bargaining
• net income
• cash flow
• principal

financial organization that accepts deposits from, and makes loans to, employees of a particular company or government agency

• net income
• inventory
• limited life
• credit union

form of business organization recognized by law as a separate legal entity having all the rights of an individual

• corporation
• multinational
• interest
• sole proprietorship