Econ Ch.3

This regulates the sale of stock in a corporation.

• labor unions

• Securities and Exchange Commission

• stockbrokers

• chamber of commerce

In a general partnership,...

• the business continues even if one partner dies.

• partners must pay specific business taxes on stock they issue.

• partners usually draw up legal papers called articles of partnership.

• partners are only liable for the business's debt up to the amount of their investment.

In its direct role as an economic organization, American government...

• regulates public utilities.

• acts as an umpire to make sure the market operates smoothly.

• owns and manages public utilities.

• makes grants to people in the form of Social Security.

An advantage of a corporation is that ...

• owners pay fewer taxes than owners of other forms of business.

• the business is subject to little government regulation.

• owners have direct and immediate control over daily management of the business.

• owners have limited liability for debt.

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

• vertical merger.

• horizontal merger.

• multinational merger.

• conglomerate.

Unlike a general partnership, in a limited partnership...

• all partners share equal financial responsibility for the firm's decisions.

• the inactive partner has limited liability for the business's debts.

• the partners must pay special business taxes.

• the business does not end with the death of a partner.

When 2 business become 1 business, this is called...

• merging

• combining

• cooperating

• organizing

Which type of business is LEAST likely to to have limited life?

• sole proprietorship

• corporation

• partnership

• proprietorship

A preferred stock...

• is free for everyone.

• gives you voting rights in the company.

• gives non-ownership rights.

• pays out dividends first.

Companies A,B,C, and D are merging together. they all make product that are unrelated and have bases of operation in multiple countries. Which types of mergers is this?

• horizontal and conglomerate

• multinational and vertical

• vertical and horizontal

• conglomerate and multinational