Economics ch.3

Question 1

combination of firms involved in different stages of manufacturing or marketing

Accepted Answer

vertical merger

Question 2

amount borrowed when getting a loan before interest

Accepted Answer

principal

Question 3

A firm ceases to exist when an owner dies, quits, or sells the business

Accepted Answer

limited life

Question 4

certificate of ownership in a corporation/ Shares

Accepted Answer

Stock

Question 5

What are the three types of business organizations?

Accepted Answer

sole proprietorship, partnership, corporation

Question 6

combination of two or more firms producing the same kind of product

Accepted Answer

horizontal merger

Question 7

all partners are equally responsible for management and debts

Accepted Answer

General partnership

Question 8

business owned and run by a single person who has the rights to all profits and all debts

Accepted Answer

Sole proprietorship

Question 9

90% of all business done in the United States?

Accepted Answer

corporations

Question 10

written government approval to establish a corporation Stock

Accepted Answer

Charter

Question 11

owner is personally and fully responsible for all losses and debts of the business

Accepted Answer

Unlimited liability

Question 12

formal contract to repay borrowed money with interest

Accepted Answer

bond

Question 13

taxation of dividends both as corporate profit and as personal income

Accepted Answer

double taxation

Question 14

A corporation does have limited liability like a sole proprietorship

Accepted Answer

false

Question 15

ALL partners are NOT active in running of the business

Accepted Answer

Limited partnership

Question 16

business organization recognized by law as an individual

Accepted Answer

Corporation

Question 17

corporation producing and selling in several different countries

Accepted Answer

multinational

Question 18

firm with four or more businesses making unrelated products

Accepted Answer

conglomerate

Question 19

A partnership does have limited life like a sole proprietorship

Accepted Answer

true

Question 20

business owned and operated by two or more people who share profits and debts

Accepted Answer

Partnership

Questions 20