corporations, mergers, multinationals

Question 1

corporation

Answer 1

a business where the owners are separate from the employees

Question 2

stock

Answer 2

common, preferred

Question 3

closely held corporation

Answer 3

stock offered to family only

Question 4

publicly held corporation

Answer 4

anyone can own stock

Question 5

four advantages of corporation

Answer 5

limited liability
transferrable ownership
ability to attract capital
long life

Question 6

four disadvantages of corporation

Answer 6

expense and difficult to start
double taxation- profits and dividends
potential loss of control by the founders
more legal requirements and regulations

Question 7

license

Answer 7

certificate of incorporation (sole proprietor and partnership can protect from liability)

Question 8

horizontal mergers

Answer 8

competition in the same market with the same good or service

Question 9

vertical mergers

Answer 9

different stages of producing the same good or service

Question 10

conglomerates

Answer 10

merging of more than three business that are unrelated products

Question 11

multinational corporations

Answer 11

produces and sells products throughout the world