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Starting Business

VIEWS: 2 PAGES: 7

									Starting a Business
I) Line of Credit
            • A) Similar to a loan
            • B) Get them through
              times of low sales
II) Bonds
        • A) Corporation
          borrows money by
          selling certificates
        • B) Promises to pay
          back plus interest
        • C) Low risk
III) Common Stock
           • A) Share in partial
             ownership of a
             corporation
           • B) Have greater
             potential for growth
           • C) High risk
IV) Mergers
      • A) Horizontal Mergers
        – 1) Merger of
          Companies in the same
          industry
        – 2) Regulated by the
          gov’t to prevent
          monopolies.
b) Vertical Merger
         • 1) Merger of two
           companies at different
           stages of production
         • 2) Regulated by the
           gov’t to insure
           competition
V) Conglomerates
            • A) Merger between
              two unrelated
              companies.
            • B) Not regulated
              because little effect
              on competition

								
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