stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Economics - Chapter 3: Business Organizations Flashcards | StudBud
Explore
/
Economics - Chapter 3: Business Organizations
Economics - Chapter 3: Business Organizations
41 terms
·
StudBud Administration
·
284 plays
Forms of business organizations, business growth & expansion, and nonprofit organizations.
Flashcards
41 cards
F
Practice quiz
P
Host live
L
Questions
41
Answers
1
In a general partnership, partners usually draw up legal papers called
the collective bargaining addendum.
the unlimited liability note
the bond certificate
the articles of partnership
2
True or false: A multinational is often a conglomerate.
True
False
3
Noted for its ability to move resources/products/money across national boundaries with ease is
a multinational
an international corporation
a conglomerate
a chamber of commerce
4
An advantage of a corporation is that...
the business is subject to little government regulation
owners pay less tax than owners of other forms of business
owners have direct/immediate control over daily management
owners have limited liability for debt
5
The main disadvantage of a general partnership is that ...
Patnerships are harder to establish than corporations.
Partnerships are less efficient than sole proprietorships.
Each partner is fully responsible for the acts all partners.
Partnerships must pay special taxes on profits.
6
The amount borrowed when getting a loan or issuing a bond is known as...
principal
cash flow
interest
income
7
This is determined by subtracting expenses, including taxes, from revenue.
Net assets
Real income
Net income
Net expenses
8
A voluntary association that buys bulk amounts of goods on behalf of its members is a...
labor union
nonprofit organization
consumer cooperative
chamber of commerce
9
A merger that involves two or more firms that produce the same kind of product is a...
vertical merger
multinational merger
conglomerate merger
horizontal merger
10
The main advantage of the corporate form of business organization is...
ease of raising money
ease of start up
freedom from business income tax
ease of management
11
A business organization that's a separate legal entity having all the rights of an individual.
corporation
principal
sole proprietorship
limited partnership
12
True or false: A conglomerate is another term for a multinational.
False
True
13
An example of a for-profit business is a...
multinational
chamber of commerce
producer cooperative
labor union
14
The indirect role of government is illustrated by ...
the Tennessee Valley Authority
a state park
the regulation of public utilities
a city's fire department
15
Nonprofit organizations may...
pay dividends
issue stock
pay income tax
provide goods/services to its members.
16
A major reason for conglomerate mergers is...
unlimited life
multinationals
depreciation
diversification
17
A corporation that has operations in a number of different countries is know as a...
multinational
merger
partnership
conglomerate
18
A non-cash charge a firm takes for the general wear & tear on its capital goods is known as...
net income
depreciation
asset allocation
an expense
19
The organization that regulates the sale of stock in a corporation is the...
stockbrokers
Securities & Exchange Commission
labor union
chamber of commerce
20
Funds left over after expenses, including taxes, are subtracted from its sales to determine...
stock
net income
dividends
cash flow
21
Basic ownership of a corporation, including voting rights, takes the form of ...
partnerships
common stock
bonds
preferred stock
22
The price paid for the use of another's money is called...
principal
a loan
depreciation
interest
23
The main reason government controls are needed on public utilities is that public utilities...
are responsible for water & electric services
are investor-or municipal-owned
usually have no competition
provide important public services
24
An organization that promotes the welfare of its member businesses is a...
partnership
chamber of commerce
cooperative
labor union
25
A business owned and run by one person is a...
limited partnership
principality
corporation
sole proprietorship
26
A workers organization formed to represent its members' interests in employment matters is a...
chamber of commerce
cooperative
labor union
nonprofit
27
A business owned and run by one person is a...
limited partnership
sole proprietorship
corporation
principality
28
Business organization where at least one partner isn't active in daily business activities.
corporation
limited partnership
nonprofit
limited life
29
A business combination of firms involved in different manufacturing or marketing steps is a...
multinational
vertical merger
horizontal merger
conglomeration
30
The most common form of business organization in the U.S. is a...
sole proprietorship
corporation
limited partnership
nonprofit
31
The local chamber of commerce works to...
aid member companies in negotiating with labor unions
promote the welfare of its member businesses & the community
earn dividends for its members
protect its members from consumer complaints
32
Negotiations between representative of labor & management is known as...
collective bargaining
a cooperative
a labor union
achamber of commerce
33
In its direct role as an economic organization, the U.S. Government...
acts as an umpire to make sure the market operates smoothly.
makes grants to people in the form of Social Security.
regulates public utilities.
owns & manages public utilities.
34
A firm that ceases to exist when the owner dies, quits, or sells the business is a...
limited life firm
corporate firm
sole proprietorship firm
limited partnership firm
35
A combination of two or more businesses to form a single firm is a...
labor union
merger
corporation
limited partnership
36
A corporation with 4 businesses that make unrelated, non-majority sales products is a...
conglomeration
multinational
cooperative
limited partnership
37
A government document granting permission to create a corporation is called a...
proxy
bond
dividend
charter
38
An economic institution that works in a businesslike manner but does no seek financial gain is
a nonprofit organization
a labor union
a limited partnership
a chamber of commerce
39
An example of a professional association would be the...
Tennessee Valley Authority
American Medical Association
U.S. Postal Service
Ocean Spray cranberry co-op
40
A voluntary association formed to carry on economic activity for the members' benefit is...
a cooperative
a labor union
a nonprofit organization
a chamber of commerce
41
An example of a service cooperative is...
Smallville Teacher's Credit Union
Metropolis Chamber of Commerce
Association of Manufacturing Workers
Better Business Bureau
