Which of the Following Is True of a Conglomerate

question 10

Multiple Choice

Which of the following is true of a conglomerate?

• A) It has low bargaining power.
• B) It is a business operating in several distinct industries.
• C) Its parts depend on each other for components and processes.
• D) It can never afford to take a long strike at any of its subsidiary.

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Definitions:

Limited Liability Company (LLC)

A business form consisting of one or more persons or entities filing an operating agreement with a state to conduct business with limited liability to the owners, yet treated as a partnership for tax purposes.

Separate Legal

Refers to a legal entity, such as a corporation, that is legally distinct from its owners.

Taxable Entity

An individual, organization, or corporation subject to taxes on income or transactions by governmental agencies.

Proprietorship

A form of business organization where a single individual owns the company and is responsible for its debts.