Chapter 3 Business Organizations

Front

What is the most common form of business organization in the United States?

Back

sole proprietorship

Front

What is the main strength of the corporate form of business organization?

Back

ease of raising financial capital

Front

A government document granting permission to create a corporation is called a

Back

charter

Front

basic ownership of a corporation, including voting rights, takes the form of

Back

common stock

Front

All of the following are strengths of the partnership form of business EXCEPT: ease of management, limited life, ease of establishment, lack of special taxes

Back

limited life

Front

A corporation that has at least four businesses, each making unrelated products, none of which is responsible for a majority of its sales, is called a

Back

conglomerate

Front

Horizontal mergers involve

Back

two or more forms that produce the same kind of product

Front

Which of the following statements is true?
Options:
All conglomerates are multinationals.
All multinationals are conglomerates.
A conglomerate is another term for a multinational.
A multinational is often a conglomerate.

Back

A multinational is often a conglomerate.

Front

Which are important for their ability to move resources, products, and financial capital across national boundaries with relative ease?

Back

multinationals

Front

What is the major reason for conglomerate mergers?

Back

diversification