Ec - Ch. 3 All slides

Unlike a general partnership, in a limited partnership

• Limited partners can make decisions for the business.
• General partners have limited liability in a limited partnership.
• Limited partners have limited liability and do not manage the business.
• Limited partners have full liability and manage the business.

This regulate the sale of stock in a corportion

• Securities and Exchange Commission

• Corporate bylaws
• Stockholder agreements
• Market regulations

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

• horizontal merger

• conglomerate merger
• market consolidation
• vertical merger

No-profit organizations may

• focus solely on profit generation
• avoid any community engagement
• provide goods and services to members

• limit their activities to private interests

Local chamber of commerce works to

• promote the welfare of its member businesses and the community

• eliminate local competition
• restrict business hours for shops
• increase taxes for local businesses

In a general partnership?

• partners usually draw up legal papers called articles of partnership

• Profits are distributed based on investment size.
• Partners can transfer their shares without consent.
• Only one partner is liable for debts.

An advantage of a corporation is that

• owners have limited liability for debt

• complex management structure
• high taxation
• unlimited liability

Which of the following is an example of the government plying an indirct role in the economy?

• Tax incentives for businesses
• Direct government ownership of companies
• Public funding for private enterprises
• Regulations affecting business operations

Which of the following is a for-profit business

• Producer cooperative

• Non-profit organization
• Chamber of Commerce

• Corporation

In its direct role as an economic organization, American government

• The American government primarily focuses on foreign relations.
• The American government has no influence on the economy.
• The American government owns and manages public utilities.

• The American government only collects taxes.