Chapter 8 Small Summative

A business owned & run by a single person is a _______________.

• Sole proprietorship

• corporation

• partnership

• franchise

Which of the following phrases best defines the term limited liability partnership?

• an organization that limits liability to the corporation rather than the individual owners

• partnership in which at least one person has less responsibility in the business operations and less liability for the business losses.

• partnership that is limited to three or more investors that split up responsibility and share an equal amount of liability

• a business model that combines aspects of corporations and partnerships

A document certifying ownership of part of a corporation is a _______________.

• bond

• stock certificate

• dividend check

• charter

Which benefit allows corporations to show large profits compared to other forms of business?

• Synergy

• Economies of scale

• Rebranding

• unlimited life

Delicious Dogs begins to sell it's business model to individuals wanting to run their own business in a specific location. The fees attached purchasing the model creates a ____________ organization.

• entrepreneurial

• corporate

• franchise

• sole proprietorship

Combination of firms producing the same kind of products

• vertical merger

• horizontal merger

• diagonal merger

• partnership

total amount of new income generated from business operations after tax is removed and depreciation is added as a non cash charge

• income statement

• net income

• cash flow

• depreciation

A company with four or more businesses that make unrelated products is called a ____________

• horizontal merger

• vertical merger

• multinational

• conglomerate

Which of the following is an advantage of a multinational?

• They produce tax revenue for the countries where they do business.

• The export scarce national resources

• They use cheap labor.

• They help preserve traditional ways of life.

Most mergers take place to improve a company's performance in the eyes of

• the employees

• the shareholders

• government regulators

• tax collectors