Term
| List the 2 reasons why mergers occur |
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Definition
efficiency to lose its corporate identity |
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Term
| describe the 2 types of mergers |
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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
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Term
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Definition
| a firm that has at least four businesses, each making unrelated products, none of which is responsible for a majority of its sales |
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Term
| what is a major reason for a conglomerate? |
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Definition
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Term
| When did conglomerates start to decline in the U.S.? |
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Definition
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Term
| where are conglomerates now developing? |
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Definition
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Term
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Definition
| a corporation that has manufacturing or service operations in a number of different countries |
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Term
| what are multinationals subject to? |
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Definition
| the laws of each country where it has operations |
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Term
| why are multinationals important? |
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Definition
| they have the ability to move resources, goods, services, and financial capital across national borders. |
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Term
| how does a non-profit organization differ from a profit seeking one? |
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Definition
| nonprofit organizations do not seek financial gain for their members |
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Term
| why are most non-profit organizations legally incorporated? |
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Definition
| to take advantage of the unlimited life feature |
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Term
| what activities do non-profit organizations not participate in? |
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Definition
| issueing stock, pay dividends, or pay income taxes |
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Term
| why are non profit organizations so difficult to analyze economically? |
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Definition
| the value of their products is not easy to measure |
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Term
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Definition
| a voluntary association of people formed to carry on some kind of economic activity that will benefit its members. |
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Term
| list and describe 3 types of cooperatives |
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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
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Term
| what is a labor organization? |
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Definition
| an organization formed to work for its members interests in various employment matters. |
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Term
| what issues does the union speak for its members? |
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Definition
| when disputes arise over pay, worker hours, and other job-related matters |
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Term
| what do labor reps negotiate for? |
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Definition
| benefits such as health care coverage, life insurance, and vacations |
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Term
| negotiations between labor and management are called? |
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Definition
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Term
| what is a professional association? |
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Definition
| a group of people in a specialized occupation that works to improve the working conditions, skill levels, and public perceptions of the profession. |
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Term
| describe the 2 major types of business organizations. |
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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
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Term
| describe the direct role of govt. in the economy. |
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Definition
| many govt. agencies produce and distribute certain goods and services to consumers, giving govt. a direct role in linking consumers and resources. |
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Term
| give examples of the roles of govt. at the federal, state, and local levels |
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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. |
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Term
| describe the 2 indirect roles of govt. |
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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.
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