Ch. 8

Question 1

ability of large businesses to operate more cheaply and efficiently than smaller ones, resulting in the lower per-unit cost for the products of the large companies

Answer 1

economies of scale

Question 2

form of business consisting of a group of people authorized by law to act as a single person and having an identity that survives its incorporators

Answer 2

corporation

Question 3

a company that gains control of another by buying their stock

Answer 3

holding company

Question 4

combination of companies to gain control of an industry and reduce competition

Answer 4

trust

Question 5

joining together of business that are engaged in similar business activities or processes

Answer 5

horizontal integration

Question 6

joining together of business that are involved in different but related activities or processes

Answer 6

vertical integration

Question 7

discount in the form of a refund or part of a payment for a product or service

Answer 7

rebate

Question 8

sociological theory that states only the fittest survive social competition and experience social advancement

Answer 8

social Darwinism

Question 9

actions to promote human welfare and benefit society

Answer 9

philanthropy

Question 10

person who organizes, manages, and assumes the risks of a business or enterprise

Answer 10

entrepreneur