econ stock investing basics

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7 Terms

1
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Mergers

Combinations of two or more corporations into a larger corporation

2
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Horizontal mergers

Combination of 2 or more corporations that provide similar goods or services

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Vertical mergers

Combine 2 or more firms involved in different stages of producing a good service

4
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Conglomerate

Combination of 3 or more businesses making unrelated products

5
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Sole proprietorship

Business owned by 1 person

Easy to start

Full control

Sole receiver of profit

Easy to discontinue

Unlimited liability

Limited access to resources

Lack permanence

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Partnership

Business owned by 2+ people who share responsibility and liability for it

Shared decision making and specialization

Larger pool of funds

Taxation (pay own taxes, business doesn’t)

At least one partner has unlimited liability

Bound by each others actions

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Cor