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A physical establishment such as a factory, farm, mine, store, or warehouse that performs one or more functions in fabricating and distributing goods is called a

A Plant

A group of firms that produce identical or similar products are called

Industry

A business establishment that owns one or more plants is called a

a firm

An industry is best defined as a group of firms that

produce identical or similar products.

A firm that makes computer chips at several locations across the country best illustrates a

multiplant firm

A firm comprised of plants or units operating in different industries, say, beer and theme parks, best illustrates a

conglomerate

A firm that produces a single product but owns plants in many different stages of the production process-for example, a steel producer that owns iron ore mines and rolling mills-best illustrates a

vertically integrated firm

A group of plants that is owned and operated by a single firm and that consists of oil fields, refineries, and gasoline stations best illustrates a

vertically integrated firm

Which form of business enterprise accounts for the largest proportion of total output

corporations

The three basic legal forms of business enterprise are

proprietorship, partnerships, and corporations

The advantages of the corporate form of business include

the ability to raise financial capital by selling stocks and bonds.

If a corporation goes bankrupt, what will the stockholders lose

They will lose only the value of their stock

what is the major disadvantage of corporations

dividends are taxed both as corporate income and as income to stockholders

The corporate form of business enterprise has promoted the development of large-scale business operations because

corporations have been able to marshal large amounts of financial capital through the sale of stocks and bonds

what is an owner's liability for the debts of a business

the owner's liability is unlimited in a partnership

what does a limited liability apply to

all corporations

what does limited liability mean

It means creditors have no legal claim on the personal assets of a corporate stockholder.

what are stocks

They are shares of ownership of a corporation

what are corporate bonds

They are promises by a corporation to repay a loan