Details Title: Business Institutions Wksht Description: Business Institutions Wksht Total Flash Cards: 24 Created: 03/02/2009 20:50:05		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Economics Flashcards
Cards in this set: Term List the 2 reasons why mergers occur Definition efficiency to lose its corporate identity Term describe the 2 types of mergers Definition horizontal merger- takes place when two or more firms that produce the same kind of product join forces.   vertical merger- takes place when firms involved in different steps of manufacturing or marketing some together Term Define Conglomerate Definition a firm that has at least four businesses, each making unrelated products, none of which is responsible for a majority of its sales Term what is a major reason for a conglomerate? Definition diversification Term When did conglomerates start to decline in the U.S.? Definition since the late 1980's Term where are conglomerates now developing? Definition asia (korea and japan) Term define multinational Definition a corporation that has manufacturing or service operations in a number of different countries Term what are multinationals subject to? Definition the laws of each country where it has operations Term why are multinationals important? Definition they have the ability to move resources, goods, services, and financial capital across national borders. Term how does a non-profit organization differ from a profit seeking one? Definition nonprofit organizations do not seek financial gain for their members Term why are most non-profit organizations legally incorporated? Definition to take advantage of the unlimited life feature Term what activities do non-profit organizations not participate in? Definition issueing stock, pay dividends, or pay income taxes Term why are non profit organizations so difficult to analyze economically? Definition the value of their products is not easy to measure Term what is a cooperative? Definition a voluntary association of people formed to carry on some kind of economic activity that will benefit its members. Term list and describe 3 types of cooperatives Definition 1) consumer cooperative- a voluntary association that buys bulk amounts of goods. 2) service cooperative- deals with services rather than goods 3) producer cooperative- helps members sell their products Term what is a labor organization? Definition an organization formed to work for its members interests in various employment matters. Term what issues does the union speak for its members? Definition when disputes arise over pay, worker hours, and other job-related matters Term what do labor reps negotiate for? Definition benefits such as health care coverage, life insurance, and vacations Term negotiations between labor and management are called? Definition collective bargaining Term what is a professional association? Definition a group of people in a specialized occupation that works to improve the working conditions, skill levels, and public perceptions of the profession. Term describe the 2 major types of business organizations. Definition chamber of commerce- promotes the welfare of its members and the community   better business bureau- a nonprofit organization sponsored by local businesses to provide general information on companies Term describe the direct role of govt. in the economy. Definition many govt. agencies produce and distribute certain goods and services to consumers, giving govt. a direct role in linking consumers and resources. Term give examples of the roles of govt. at the federal, state, and local levels Definition -the federal govt. also uses many scarce resources to create a service that benefits all Americans   - state and local governments use the factors of production to provide police and fire protection, rescue services, schools, and court systems. Term describe the 2 indirect roles of govt. Definition -make sure market economy operates as the rules say it should - grants money to people in the form of social security, veterans benefits, financial aid to college students, and unemployment compensation.