Author Question: A key reason most sole proprietorships remain relatively small is that: A) they have limited ability ... (Read 173 times)

V@ndy87 · **on:** Jul 14, 2018

A key reason most sole proprietorships remain relatively small is that:
A) they have limited ability to raise the funds necessary to finance growth.
B) they involve extensive paperwork and incur heavy costs.
C) heavy taxes are levied directly on their earnings as a business.
D) their stockholders would rather receive dividends than have earnings reinvested to finance growth.

Question 2

In your own words, explain the differences among a horizontal merger, a vertical merger, and a conglomerate merger.

sylvia · **Reply #1 on:** Jul 14, 2018

Answer to Question 1

A

Answer to Question 2

A horizontal merger is a merger between like firms-firms that make and sell similar products or services in a similar manner and in similar markets. A vertical merger is between firms that operate at different but related levels in the production and marketing of a product. A conglomerate merger is between firms in completely different industries.