Part 7 Flashcards
What is a holding company?
A specialized corporation that has no products or consumers. They own stocks in other corporations.
What is the purpose of a holding company?
They Allow capitalists an opportunity to own several parts of several companies.
What is a capitalist?
A person with privately owned money that helps carry on a business
What is a trust?
A specialized form of corporation that is formed when several companies give control of operations to a single form of trustees who then manage the business.
What is a cartel?
A specialized form of trust that is an association of businesses that make the same product, get limit the supply in order to maintain high prices.
Are cartels legal in the US?
No because they mess up free enterprise
What is free enterprise?
Divisors by Adam smith. Businesses are owned by private citizens with no direction from the government.
What are dividends?
Shares of a corporation’s profit which is based on how many shares of stock you have.
