unit 3

corporation

a formal organization of producers that agree to coordinate prices and production

McDonalds, apple, amazon

name 3 examples of a corporation

to expand market share

name a reason to create a merger

reduces competition

name an advantage of a merger

gaps in communication

name a disadvantage of a merger

exxonmobil, kraft heinz company

name 2 examples of a merger

sole proprietorship

a company owned and managed by a single individual

easy startup, full control

name two advantages of a sole proprietorship

liability, limited access to resources

name two disadvantages of a sole proprietorship

70

what percentage of businesses are sole proprietorship

multinational

what type of business structure has headquarters in one country but sells to multiple companies

mcdonalds, apple, amazon

name 3 examples of a multinational company
hint: m___, a___, a___

spreads technology and production methods

name an advantage of a multinational company

low wages and poor working conditions

name a disadvantage of a multinational company

franchise

what is a semi-independent business that pays fees to a prent company

McDonalds

name 1 example of a franchise
hint: m___

standardized quality

name an advantage of a franchise

limited product line

name a disadvantage of a franchise

limited external regulation

name an advantage of a partnership

liability

name a disadvantage of a partnership