Business Organizations And Market Structure

Question 1

Partnership

Answer 1

Operated by two people

Question 2

Public corporations

Answer 2

Issue stock that can be publicly traded

Question 3

Private corporation

Answer 3

Controls who can buy or sell its stock

Question 4

Multinational corporations

Answer 4

Large corporation with branches in several counties

Question 5

Merger

Answer 5

Combination of two or more businesses into one firm

Question 6

Horizontal merger

Answer 6

Two or more firms that produce the same kind of product join forces ex. Office Depot buying office max

Question 7

Vertical merger

Answer 7

Firms in different stores of marketing or manufacturing join together ex shell oil and texaco

Question 8

Conglomerate

Answer 8

Business made up of several companies each one producing different goods and services ex General Electric

Question 9

Franchise

Answer 9

Business where the owner pays a parent company to sell their products themselves ex Tim hortons

Question 10

Oligopoly

Answer 10

A few large sellers dominate an industry and sell similar products
More control over price and competitors follow each other
Difficult to enter and leave market

Question 11

Sole proprietorship

Answer 11

Owned and operated by one person

Most common type in the US

Question 12

Outsourcing

Answer 12

Jobs taken across seas

Question 13

Price fixing

Answer 13

Businesses working together to set prices for competing products

Question 13

Predatory pricing

Answer 13

Large businesses set prices very low to eliminate competition

Question 13

Public disclosure

Answer 13

Most reveal product info

Question 13

Sherman anti trust act

Answer 13

First anti trust law passed in 1890

Question 14

Food and drug administration

Answer 14

Protects consumers from unsafe food drugs and cosmetics (FDA)

Question 15

Federal trade commission

Answer 15

(FTC) enforces anti trust laws and monitors unfair business

Question 16

Federal communication commission

Answer 16

Regulates communications industry (FCC)

Question 16

Securities and exchange commission

Answer 16

Regulates stocks market and bonds

Question 16

Environmental protection agency

Answer 16

(EPA) enforces environmental laws regarding pollution and hazardous materials

Question 16

Consumer product safety commissions

Answer 16

(CPSC) sets safety standards for products issues safety recalls

Question 17

Sole proprietorship advantages/disadvantages

Answer 17

One person owns everything all profit goes to you easy to open few regulations

Must find all money on your own work long hours must be able to afford

Question 18

Partnership advantages/disadvantages

Answer 18

Covered under the u inform partnership act
Easier to get bank loans when you have a partner

Debt is in both partners disagreements can hurt business

Question 19

Corporation advantages/disadvantages

Answer 19

Responsibility for debt is limited
Business continues even after a change in ownership limited liability unlimited life

More costly and time consuming have more regulations and rules less control