Chapter 7 Study Guide
Module 19
Summing Up the Key Ideas: Match the following terms to the correct definitions.
A. Visionary B. Innovative C. Willing to take risks D. Optimistic
E. Self- motivated F. Attentive G. Organized H. Entrepreneur
___________ 1. Coordinates and manages resources efficiently.
___________ 2. Learns from experts, colleagues, customers; recognizes and adapts to market
conditions.
___________ 3. An innovator and risk taker who creates new products, figures out new ways of
producing things, or starts a business for profit.
___________ 4. Is disciplined and persistent; willing to solve problems.
___________ 5. Sees a business opportunity when others may not.
___________ 6. Puts savings and reputation on the line by starting a new business venture.
___________ 7. Is realistic but confident of business success.
___________ 8. Transforms ideas into new products, processes, or businesses.
Module 20
Summing Up the Key Ideas: Match the following terms to the correct definitions.
A. Sole proprietorship B. Partnership C. Corporation
D. Corporate bond E. Business franchise F. Nonprofit organization
G. Limited liability company H. Cooperative
___________ 1. A legal entity formed to carry out a “not- for- profit” mission.
___________ 2. A for- profit business fi rm owned by two or more people, each of whom has a
financial interest in the business.
___________ 3. Consists of a parent company and numerous associated businesses that sell a
standardized good or service.
___________ 4. A business fi rm owned by one person, the proprietor.
___________ 5. A business fi rm that is itself a legal entity.
___________ 6. A hybrid business organization that combines features of corporations,
partnerships, and sole proprietorships.
___________ 7. A business owned by its members and operated in order to supply members
and others with goods and services.
___________ 8. A contract between a corporation and the owner of the bond that obligates the
corporation to pay the bond’s owner a certain amount of money in the future.
Module 21
Summing Up the Key Ideas: Match the following terms to the correct definitions.
A. After- tax profit B. Acquisition C. Income statement
D. Horizontal merger E. Vertical merger F. Depreciation
G. Conglomerate H. Multinational corporation
___________ 1. Revenue minus expenses and taxes.
___________ 2. The dollar value of capital used up due to aging and wear.
___________ 3. It combines fi rms that operate at different stages in the production of a good.
___________ 4. The purchase by one fi rm of a controlling interest in another firm.
___________ 5. A single business enterprise formed by combining fi rms from unrelated
industries.
___________ 6. A company that operates production facilities or sells products in more than
one country.
___________ 7. It combines two fi rms that produce the same type of product.
___________ 8. Lists a business’s revenue, expenses, and profit over some time period.
Module 22
Summing Up the Key Ideas: Match the following terms to the correct definitions.
A. Business ethics B. Globalization C. Corporate social responsibility
___________ 1. Refers to the duties and obligations corporations have to different
stakeholders.
___________ 2. The examination of standards for right and wrong behavior by firms.
___________ 3. The broadening access to products, people, businesses, technology, ideas, and
money across national borders to create a more integrated and interdependent global
economy.