When two companies that produce the same kind of product merge, this is called A. horizontal merger.B. vertical merger.C. conglomeration.D. multinational merger.
A. horizontal merger.
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A woman borrows money from a bank to purchase a house. She promises to give the bank the house if she cannot repay the loan. This woman has signed aA. foreclosure.B. mortgage.C. trust.D. cease and desist order.
B. mortgage.
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Under perfect competition, what sets the equilibrium price in the market?A. nonprice competitionB. supply and demandC. the governmentD. a monopoly
B. supply and demand
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How would an economist characterize a local government increasing property taxes to improve the school system?A. laissez-faire in actionB. an example of collusionC. a cease and desist orderD. subsidizing a positive externality
D. subsidizing a positive externality
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To get a picture of a business's overall expenses and profits, you should look at itsA. inventories.B. depreciation.C. dividends.D. income statement.
D. income statement.
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nonprofit service cooperative that accepts deposits, makes loans, and provides other financial services
credit union
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a form of corporate ownership giving one vote per share for stockholders
common stock
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organization that works for its members' interests concerning pay, working hours, health coverage, fringe benefits, and other job-related matters
labor union
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form of stock without vote, in which stockholders get their investments back before common stockholders do
preferred stock
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situation in which a firm legally ceases to exist when an owner dies or quits, or when a new owner is added
limited life
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all partners are equally responsible for management and debts
general partnership
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using social networking to appeal to potential investors
crowdfunding
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combination of firms producing the same kind of product
horizontal merger
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place where entrepreneurs can receive the training to build a successful start-up business
incubator
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lender of investment funds to a start-up business in exchange for partial ownership of the business
venture capitalist
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a strategy of holding different kinds of investments to a minimize risk
