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Unit 2 Lesson 2
Business Types (Continued)
&
Mergers
Create a Poster About Your Business
• Your logo and business name should feature prominently.
• Include an “information” section, which includes the following:– Nature of the business (What is being produced?)– Amount of start-up money used.– Source of the start-up money.– Partner profit division percentages.– Percent of the business publicly offered.
Do corporations have moral responsibilities?
Structured Academic Controversy
Merger Activity
Mergers
• Horizontal merger: businesses make same/similar product
• Vertical merger: businesses make products at different stages of production of the same good
• Conglomerate: products are not related in any way
It’s a Horizontal Merger
• If:
• Wachovia merges with Wells Fargo
It’s a Vertical Merger
• If:• A lumber mill• &• A baseball bat maker • &• A sporting goods store• Merge together
It’s a conglomerate if:
• An airplane company, television network, bank, & electricity company merged together.
Merger Worksheet
Business Type Quiz
1) Which is the biggest disadvantage of a sole proprietorship?
• A) Price Leadership
• B) Interdependence
• C) Double Taxation
• D) High Personal Liability
2) What is the name for the document that spells out how partners divide their profits &
losses?
• A) Charter
• B) Contract of Terms
• C) Articles of Partnership
• D) Stock Certificate
3) Which business type can generally raise the most financial
capital?
• A) sole proprietorship
• B) small business
• C) partnership
• D) corporation
4) Owners of corporations have:
• A) Unlimited Liability
• B) Limited Liability
• C) the responsibility of managing the corporation.
• D) difficulty transferring ownership.
5) How many times is corporate income taxed?
• A) Corporate income is not taxed.
• B) 1 time
• C) 2 times
• D) 3 times