Economics Chapter 8 Vocab

What is a sole proprietorship?

Created by one owner. No seperate legal entity.

What is a business partnership?

Owned by multiple owners. Owners split liability and profits.

What is a corporation?

Split into stocks that are owned by shareholders and power is given to executives. Separate legal entities from owners.

What is a franchise?

Owned by franchiser and specific locations owned by franchisees. Helps to expand the business to more locations faster.

What is a merge?

Companies joining together to expand business.

What is a horizontal merger?

Producers who produce the same product coming together grow the business larger.

What is a vertical merger?

Created by one owner. No seperate legal entity.

What is a conglomerate?

A corporation made up of several independent companies that all operate separately.