Ch.+8+Review

Ch 8 Review pg. 206 #1-8, 10-17

1. Vertical merger 2. Liability 3. Corporation 4. Sole proprietorship 5.Consumer cooperative 6. Conglomerate 7. Royalties 8. Limited partnership 10. You have to pay all debts yourself, A partner can be a disasterjudge heir judgment is not good, you risk falling out with your partner. 11. Easy start up, shared decision making and specialization, larger pool of capital, sharing of taxation payment 12. You can vote in the board of directors and you get a share of the profits if the company does well 13. Advantages: management training and support, standardized quality, national advertising programs, financial assistance, centralized buying power.Disadvantages: high franchise fees and royalties, strict operating standards, purchasing restrictions, limited product line. 14. Conglomerates- business combination merging more than 3 businesses that make unrelated products, Horizontal Mergers- the combination of 2 or more firms competing in the same market with the same good or service (ex. 2 leading car companies merging), Vertical Mergers- the combination of 2 or more firms involving in different stages of producing same good or service 15.Multinational corporations are corporations that sell their products all around the world. 16. Can have reduced prices, Creates strong working commitment, Limited liability. 17.