Quiz 8

Question 1

Conglomerate

Answer 1

firm with four or more businesses making unrelated products, with no single business responsible for the majority of its sales.

Question 2

Corporation

Answer 2

A form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, and sue and be sued.

Question 3

Franchise

Answer 3

business investment that involves renting or leasing another successful business model.

Question 4

Net income

Answer 4

measure of business profits determined by subtracting all expenses, including taxes, from
revenues.

Question 5

Nonprofit organizations

Answer 5

economic institution that operates like a business but does not seek financial gain; schools, churches, and community-service organizations are examples.

Question 6

Unlimited Liability

Answer 6

a requirement that an owner is personally and fully responsible for all losses and debts of a business; applies to proprietorships and general partnerships.