Chapter 8 Econ

What is a bond?

• A fixed income instrument

• A type of stock

• A business model

• A legal entity

Which of the following is an example of a conglomerate?

• Toyota

• McDonald's

• General Electric

• Apple Inc.

What is the main benefit of a cooperative?

• High dividends

• Shared resources and profits

• Market expansion

• Limited liability

What does a corporation allow its owners to do?

• Avoid paying taxes

• Operate without a business plan

• Raise funds through stock sales

• Manage the business personally

What is a dividend?

• A legal structure

• A business model

• A payment to shareholders

• A type of investment

What is the significance of a horizontal merger?

• Enhances product quality

• Increases market share

• Reduces employee count

• Lowers production costs

In a general partnership, what do partners share?

• Only profits

• Only liabilities

• Profits, losses, and liabilities

• Only management duties

What is the main purpose of a nonprofit organization?

• To sell franchises

• To maximize profits

• To provide services for social issues

• To operate in multiple countries

How does limited liability benefit business owners?

• It allows them to avoid taxes

• It ensures business longevity

• It protects personal assets from business debts

• It guarantees high profits

What is a limited partnership?

• A business owned by a single person

• A partnership with no liabilities

• A partnership with limited partners who do not manage

• A type of corporation