Econ Chapter 8 and 9 Test

• Ease of start up
• Relatively few regulations
• Sole receiver of profit
• Full control
• Easy to discontinue

• Unlimited personal liability
• Lack of permanence

• 1. general partnership
• 2. Limited partnerships
• 3. Limited liability partnership

• 1. Ease of start-up
• 2. Shared decision making and specialization
• 3. Larger pool of capital

• 1. Unlimited liability
• 2. Potential for conflict

• 1. Closely held
• 2. Publicly Held

• 1. Limited Liability
• 2. Transferable ownership
• 3. Ability to attract capital
• 4. Long life

• 1. Expense and difficulty of start-up
• 2. Double taxation
• 3. Potential loss of control by the founders
• 4. More legal requirments and regulations

• 1. Horizontal Mergers: when you join 2 or more firms competing in the same market with the same good or service. _{Ex: 2 automaker, Chrysler Corporation and Daimler-Benz, merged to form DaimlerChrysler in 1998.}
• 2. Vertical Mergers: when you join 2 or more firms involved in different stages of producing the same good or service. _{They control all phases of production, rather than rely on the goods or services of outside suppliers.}
• 3. Conglomerates: when firms buy other companies that produce totally unrelated goods or services. _{Like Johnson and Johnson.}

A large corporation that produces and sells its goods and services throughout the world. _{Ex: McDonalds.}

• Provide jobs and products through the world
• Spread new technology and production methods
• Jobs raise standard of living

• Negatively influence culture and politics in the countries in which they operate
• The wages are low

• 1. Built in reputation
• 2. Management training and support
• 3. Standardized quality
• 4. national advertising program
• 5. financial assisstance
• 6. centralized buying power

• 1. high franchising fees and royalties
• 2. strict operating standards
• 3. purchase restrictions
• 4. limited product line

• 1. Consumer Cooperatives
• 2. Service Cooperatives
• 3. Producer Cooperatives

Institution that functions much like a business, but does not operate for the purpose of generating profits. _{Ex: Hospitals, museums, and YMCA.}

Nonprofit organizations that works to improve the image, working conditions, and skill levels of people in particular occupations. _{Ex: The American Medical association(PO) opposes advertising. It believes doctors present a less professional, authoritive, and caring image if they advertise for patients.}

Nonprofit organization that promotes collective business interests for a city, state, etc., or for a group of similar businesses.

• Worked for 1hr for pay in the past week
• Worked 1hr or more but were unpayed in a family business.
• Held a job but didn't work to do vacation, illness, labor disputes, or bad weather

• Temporarily out of work
• They are not looking for a job but have looked for one in the past 4 weeks

The labor force in relation to U.S. population increased from 59.2% in 1950 to 66.6% in 2003 to 68% in 2010