Chapter 3 Business Organizations

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

• sole proprietership

• partnership

• corporation

• limited partnership

What is the main strength of the corporate form of business organization?

• ease of raising financial capital

• ease of establishment

• ease of management

• freedom from business income teaxes

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

• dividend

• charter

• bond

• proxy

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

• bonds

• preferred stock

• partnerships

• common stock

All of the following are strengths of the partnership form of business EXCEPT

• ease of management

• limited life

• ease of establishment

• lack of special taxes

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

• multinational

• horizontal corporation

• conglomerate

• vertical merger

Horizontal mergers involve

• two or more firms in different countries

• two or more forms that produce the same kind of product

• two or more firms involved in different steps of manufacturing or marketing

• two or more forms that produce different products

Which of the following statements is true?

• All conglomerates are multinationals.

• All multinationals are conglomerates.

• A conglomerate is another term for a multinational.

• A multinational is often a conglomerate.

Which are important for their ability to move resources, products, and financial capital across national boundaries with relative ease?

• corporations

• conglomerates

• mergers

• multinationals

What is the major reason for conglomerate mergers?

• diversification

• multinationals

• unlimited liffe

• conglomeration