Business Organizations
Type of business organization ran by one owner:
Sole Proprietorship
True or False: When 2 businesses merge together, one of the 2 businesses no longer legally exists.
True
Diversified risk, easier to gain capital, easier to attract employees, ease of ownership transfer, can hire professionals to run the company
Give 1 example of a "community organization" in regards to non-profits:
Churches, schools, animal shelters, etc...
People face ___________.
Trade-offs
A type of merger where 2 or more businesses join together that produces the same type of product.
Horizontal Merger
What is 1 pro of a partnership in regards to a business organization?
Easier to raise capital, easier to attract employees, only taxed once, reduced liability
The chamber of commerce exists to help promote ________________.
Local Businesses
Finish the sentence: The cost of something _____________.
is what you give up to get it.
Limited Partnership
A type of merger where two or more businesses join together that are producing products, but in a different stage of the production chain.
What are 2 cons of a sole proprietorship?
Limited life, Unlimited Liability, Hard to attract employees, Hard to raise capital, Lack of experience
Credit unions act as non-profit versions of ______.
Banks
Finish the sentence: Society faces a short-run trade-off between ______________ & ______________.
Inflation & Unemployment
A corporation must file for a charter in the state where its ____________ is located.
Headquarters
What is the term for a business that is producing goods or services in more than one country?
Multinationals or Multinational Corporations
What are 2 cons of a corporate business structure?
Double taxation, Less say in the business, Expensive to get a charter / government regualation
Organization that works for its members’ interests concerning pay, working conditions, & benefits.
Labor Union
Percentage of a corporation's profits that are sent out to shareholders:
Dividend
This is a type of corporation that produces 4 or more unrelated products/services.
Conglomerate
Usually it happens after something negative happens in the company. Merging with another company can help them see their company in a more positive light.
What are 3 potential cons of running a multinational corporation:
Complex management, Cultural Differences, Legal Challenges, Brand Identity, Tax complexity, Operating Costs, Language Barriers
What does the BBB (Better Business Bureau) do as a non-profit organization?
Helps build trust between consumers and businesses by providing reliable information about businesses to the consumers.
What type of stock gives the owner voting rights in a corporation?
Common Stock