Econ Chapter 3 Essay
Short Answer
1.
Summarizing Information List two reasons businesses merge. Define a
vertical merger and a horizontal merger.
2.
Analyzing Information Why should members of a general partnership be
concerned about the financial responsibility of their partners?
3.
Which letter represents the proper location on the diagram for “ownership shares in a
corporation”?
4.
Which letter on the diagram represents the proper location for “stockholders receive
voting rights”?
5.
PepsiCo, Inc.
Employees
Location of Operations
Source of Profits
Selected Products
151,000
PepsiCo sells soft drinks in approximately 170 countries,
snack food in more than 100 countries, and juices in
approximately 23 countries.
Pepsi-Cola ($992 million) 35%
Frito-Lay ($1.791 billion) 64%
Tropicana Products, Inc. ($40 million) 1%
Soft Drinks: Diet Pepsi, All Sport, Mountain Dew, Pepsi
One, Pepsi-Cola, Slice, Lipton Teas, Aquafina
Snack Foods: Cheetos, Doritos, Fritos, Lay’s, Ruffles,
Sabritas, Santitas, Tostitos, Rold Gold pretzels
Juices: Tropicana Pure Premium, Tropicana Twister, Dole
Juices, Fruvita Juices
Market Shares
Soft Drinks: 33% of the U.S. market
Snack Foods: 60% of the U.S. snack chip industry
Juices: 70% of not-from-concentrate juice market in U.S.
Source: PepsiCo, Inc. Annual Report, 1998.
Based on the table, how do PepsiCo’s snack food products compare to its soft drinks
in terms of market share and profit?
Essay
6.
Making Comparisons Define and compare mergers, conglomerates, and
multinationals. How does each of these business forms benefit the consumer?
7.
Analyzing Information Explain how the government plays both a direct and an
indirect role in the economy.
8.
Making Comparisons Name three forms of businesses in the United States. Then
compare their structures and list one advantage and one main disadvantage of each.