Flashcards › Business Organizations

What is a merger? Takes place when two or more firms come together. What is a horizontal merger? Takes place when two or firms that make the same product come together. What is a vertical merger? Takes place when firms involved in the steps of manufacturing comes together. What is a conglomerate? The combination of several diverse firms. What are multinational companies? Companies that are based in more than one country. What are corporations? A form of business that is recognized by law as a separate legal entity having all the right as an individual. It has the right to buy and sell property, enter legal contracts, and be sued. What is a partnership? A business jointly owned by two or more people. What is a sole proprietorship? A business owned by one individual. Reinvestments Takes place when a business puts its profits back into the business. What are nonprofit organizations? Operates in a business like manner to promote the collective interests of its members rather than seek financial gain for its owners. key terms that are used in chapter 3 Business Organizations