Business Types
What type of business has limited life?
What is a sole proprietorship?
Which stock gives one vote per share?
What is common stock?
A nonprofit that provides services to its members is called a ______.
What is a service co-op?
A merger between companies producing the same product is a ______ merger.
What is a horizontal merger?
What is crowdfunding?
Using social networking to appeal to potential investors.
In what form of partnership are all owners equally responsible for management and debts?
What is a general partnership?
Which stock receives investment returns before common stockholders?
What is preferred stock?
Nonprofit and for-profit firms both use ______.
Scarce factors of production.
What type of merger occurs when two companies producing identical goods combine?
A horizontal merger.
What is the main purpose of a business incubator?
To provide training and support to help entrepreneurs succeed.
What happens to a business with limited life when the owner dies or quits?
It legally ceases to exist.
What is net income?
Total income after expenses.
True or False: Most nonprofit organizations are informal and not incorporated.
False
What is a conglomerate?
A firm made up of different companies producing unrelated products.
A lender who invests money in a startup in exchange for partial ownership is called a ______.
What is a venture capitalist?
Name one advantage of a sole proprietorship.
Easy to start / owner keeps all profits / owner makes all decisions. (Any correct advantage)
True or False: Preferred stockholders can vote in corporate decisions.
False — they usually cannot vote.
A nonprofit that works in a businesslike way to promote member interests—such as pay or working conditions—is called a ______.
What is a labor union?
A business where two or more people share responsibility and debts is a ______.
What is a partnership?
What is the main goal of a venture capitalist?
To get a good return on investment.
What must a person do in order to incorporate a business?
File for permission with the government.
What is one major difference between common stock and preferred stock?
Common stock has voting rights; preferred stock does not but is paid first. (Either is acceptable)
What type of cooperative accepts deposits, makes loans, and provides financial services?
What is a credit union?
A firm operating in multiple countries is called a ______.
What is a multinational?
What type of place helps entrepreneurs build successful start-ups by offering training, mentoring, and facilities?
What is an incubator?