Chapter 8 Vocab Quiz

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    Advantage that large companies have over small companies

    • Holding Company
    • Trust
    • Entrepreneur
    • Corporation
    • Economies of Scale
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About This Quiz


This quiz will only be over the key terms found in Chapter 8

Chapter 8 Vocab Quiz - Quiz

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  • 2. 

    A discount given to the cost of a product or service.

    • Trust

    • Corporation

    • Economies of Scale

    • Holding Company

    • Rebate

    Correct Answer
    A. Rebate
    Explanation
    A rebate is a discount given to the cost of a product or service. It is a partial refund or reduction in price that is offered by the seller to the buyer after the purchase has been made. This can be in the form of cash back, a gift card, or a coupon that can be used towards future purchases. Rebates are often used as a marketing strategy to incentivize customers to buy a particular product or service by offering them a financial incentive.

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  • 3. 

    Actions that benefit society

    • Social Darwinism

    • Philanthropy

    • Trust

    • Vertical Integration

    • Horizontal Integration

    Correct Answer
    A. Philanthropy
    Explanation
    Philanthropy refers to actions that benefit society, such as donating money, resources, or time to charitable causes. It involves individuals or organizations voluntarily giving back to the community and supporting initiatives that address social issues and improve the well-being of others. Unlike Social Darwinism, which promotes the idea of survival of the fittest and justifies inequality, philanthropy focuses on promoting equality and making a positive impact on society. Trust, vertical integration, and horizontal integration do not necessarily involve actions that directly benefit society as philanthropy does.

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  • 4. 

    Combining of companies in different, but related businesses.

    • Vertical Integration

    • Horizontal Integration

    • Holding Company

    • Corporation

    • Trust

    Correct Answer
    A. Vertical Integration
    Explanation
    Vertical integration refers to the combining of companies that operate in different, but related businesses. This strategy allows a company to control multiple stages of the production or distribution process, from raw materials to the final product or service. By vertically integrating, a company can potentially reduce costs, improve efficiency, and gain more control over its supply chain. This can also lead to increased market power and the ability to capture a larger share of the value chain.

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  • 5. 

    A business organizer .

    • Trust

    • Holding Company

    • Corporation

    • Entrepreneur

    • None of these are correct

    Correct Answer
    A. Entrepreneur
    Explanation
    The correct answer is "Entrepreneur." An entrepreneur is someone who organizes and manages a business venture, taking on financial risks in order to do so. They are known for their ability to identify opportunities, innovate, and create value in the market. This term accurately describes an individual who starts and runs their own business, making it the most suitable choice among the given options.

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  • 6. 

    The combining of companies that are in the same kind of business

    • Vertical Integration

    • Horizontal Integration

    • Holding Company

    • Trust

    Correct Answer
    A. Horizontal Integration
    Explanation
    Horizontal integration refers to the combining of companies that are in the same kind of business. This means that companies within the same industry merge or acquire each other to expand their market share, increase their economies of scale, and gain a competitive advantage. Horizontal integration allows companies to consolidate their operations, reduce competition, and potentially increase their profitability by eliminating duplicate functions and sharing resources.

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  • 7. 

    A company that does not make any products, but instead holds stocks in many different companies

    • Trust

    • Vertical Integration

    • Holding Company

    • Corporation

    • Entrepreneur

    Correct Answer
    A. Holding Company
    Explanation
    A holding company is a type of company that does not produce any goods or services itself, but instead owns stocks or shares in other companies. It exists solely to manage and control these investments. By holding stocks in multiple companies, a holding company can diversify its portfolio and potentially earn profits through dividends and capital appreciation. This allows the holding company to have control and influence over its subsidiary companies without directly engaging in their operations.

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  • 8. 

    A company that is formed by a group of investors

    • Trust

    • Corporation

    • Holding Company

    • Entrepreneur

    • Social Integration

    Correct Answer
    A. Corporation
    Explanation
    A corporation is a type of company that is formed by a group of investors. It is a legal entity that is separate from its owners and is recognized as such by the law. This means that the corporation has its own rights and responsibilities, and can enter into contracts, own property, and sue or be sued. The investors who form the corporation are known as shareholders, and they own shares of the company's stock. The shareholders elect a board of directors to oversee the company's operations and make important decisions on their behalf. Corporations are often used for large businesses because they provide limited liability protection for the shareholders and allow for easy transfer of ownership through buying and selling shares.

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  • 9. 

    Philosophy used by business based on "Survival of the Fittest"

    • Social Darwinism

    • Corporation

    • Trust

    • Holding Company

    • Philanthropy

    Correct Answer
    A. Social Darwinism
    Explanation
    Social Darwinism is the correct answer because it refers to the philosophy used by businesses based on the concept of "Survival of the Fittest." This philosophy suggests that businesses should operate in a competitive manner, where only the strongest and most successful businesses survive while weaker ones fail. Social Darwinism is often associated with the belief that this competitive nature is beneficial for society as a whole, as it leads to progress and improvement. It is important to note that Social Darwinism has been criticized for its potential to justify unethical practices and disregard social responsibility.

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  • 10. 

    When a company is controlled by a board.

    • Holding Company

    • Trust

    • Vertical Integration

    • Horizontal Integration

    • Corporation

    Correct Answer
    A. Trust
    Explanation
    When a company is controlled by a board, it is typically referred to as a corporation. A corporation is a legal entity that is separate from its owners, and its operations are overseen by a board of directors. The board is responsible for making important decisions and setting the overall direction of the company. Trust, holding company, vertical integration, and horizontal integration do not necessarily involve a board of directors and are different concepts in the business world.

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  • Current Version
  • Mar 19, 2024
    Quiz Edited by
    ProProfs Editorial Team
  • Oct 28, 2009
    Quiz Created by
    Cabbott
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