Business Organization Review

What type of business organization has the most sales in the United States?​

• Sole proprietorships

• Partnerships

• Corporations

• Nonprofits

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

• the employees.

• ​government regulators.

• tax collectors.

• ​the shareholders.

A document certifying ownership of part of a corporation is a​

• Charter

• Stock certificate

• Dividend Check

• Bond

When two companies that produce the same kind of product merge, this is called a​

• Horizontal merger

• Vertical merger

• conglomeration

• Multinational merger

Which of the following is an advantage of sole proprietorship?

• ​The owner keeps all the profits.

• The owner makes all the decisions.

• All of the statements are true.

• ​There are almost no requirements to start up a sole proprietorship.

A franchise is​

• a temporary investment through a limited partnership in a start-up business.

• ​a temporary investment through a general partnership in a start-up business.

• ​a temporary investment through leasing or renting a company’s successful business model.

• ​a temporary investment through stock ownership in a company’s successful business model.

Which of the following is an example of a natural monopoly?

• Levi Jeans

• Coca-Cola

• United Airlines

• City of Mckinney water service

Why does no firm dominate in a perfect competition.

• No firm wants to

• Each firm sells to different people

• Each firm produces exactly the same towards total supply that they cannot influence prices

• one firm will eventually dominate and make it a monopoly

A government license that gives the inventor of a new product the exclusive right to produce and sell it.

• market power

• economies of scale

• patent

• license

An obstacle that makes it difficult for new firms to enter a market

• barrier to entry

• hurdle

• unions

• licence