Business Structures Review

Match the following key terms with their definitions:

• A legal entity separate from its owners

• Sole Proprietorship

• A business owned by one person

• Corporation

• A business owned by two or more people

• Franchise

• Operates under a parent company

• Partnership

Which of the following is the type of business merger where the companies are in the same industry?

• Conglomerate

• Horizontal Merger

• Vertical Merger

• Cooperative

What is a Conglomerate?

• A single business entity

• A group of diverse companies under common ownership

• A type of partnership

• A form of cooperative

Which term describes a business owned by two or more people?

• Sole Proprietorship

• Partnership

• Corporation

• Franchise

What is a Franchise?

• A) A business owned by one person

• B) A business that operates under a parent company

• C) A type of merger

• D) A form of trust

Match the following economic concepts with their descriptions:

• The loss of potential gain from other alternatives when one alternative is chosen

• Profits

• The benefits and costs of choosing one option over another

• Trade-offs

• The financial gain made in a transaction

• Incentives

• Factors that motivate individuals to perform an action

• Opportunity Cost

Which of the following is a legal entity separate from its owners?

• Sole Proprietorship

• Partnership

• Corporation

• Cooperative

Which term refers to the financial gain made in a transaction?

• Incentives

• Profits

• Trade-offs

• Opportunity Cost

Match the following business structures with their characteristics:

• Owned by one person

• Cooperative

• Operates under a parent company

• Sole Proprietorship

• Legal entity separate from its owners

• Franchise

• Owned and operated by a group of individuals

• Corporation

What is the main characteristic of a Vertical Merger?

• A merger between companies at the same stage of production

• A merger between companies at different stages of production

• A merger between unrelated companies

• A merger between competing companies