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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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