Econ Chapter 3

corporation

business organization recognized by law as a separate legal entity having all the rights of an individual

limited life

a firm ceases to exist when the owner dies, quits, or sells the business

depreciation

a non-cash charge a firm takes for the general wear and tear on its capital goods

sole proprietorship

a business owned and run by one person

limited partnership

business organization in which at least one partner is
not active in the daily running of the business

merger

a combination of two or more business to form a single firm

Net income

determined by subtracting expenses, including taxes, from
revenue

collective bargaining

negotiations between representatives of labor and
management

multinational

a corporation that has operations in a number of different
countries

Vertical merger

business combination of firms involved in different steps of
manufacturing or marketing

Nonprofit organization

economic institution that works in a businesslike manner but does not seek financial gain

Cooperative

voluntary association of people formed to carry on some kind of economic activity that will benefit its members

Labor union

organization of workers formed to represent its members
interest in various employment matters

A **horizontal merger** is the joining of firms that make the same product. A **vertical merger** is the joining of firms involved in different stages of manufacturing or marketing

What is the difference between a horizonal and vertical merger?

Represent workers’ interest and negotiate with management through collective bargaining.

What is the purpose of a labor union?

They give job opportunities and provide technology.

What advantages might a multinational corporation bring to a host nation?

A **horizontal merger** is the joining of firms that make the same product. A **vertical merger** is the joining of firms involved in different stages of manufacturing or marketing.

Describe the different ways a business can merge.

A charter

What is the name of a government document that grants permission to create a corporation.

Sole proprietorships

What is the most common form of business organization in the United States?

Coca-cola

After the work "OK", what is the second most recognizable word in the world?

Apple

In the video they said that _______ was compared to a small country.

Amazon, Microsoft, Google

Name two top ten technology companies according to the video.

Nestle

According to the video what is the largest food and beverage company in the world.