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5 Written questions

5 Matching questions

  1. horizontal merger
  2. acquisition
  3. S corporation
  4. conglomerate merger
  5. distributorship
  1. a type of franchising arrangement in which the franchisor makes a product and licenses the franchisee to sell it.
  2. b A combination of two firms that are in the same industry
  3. c A form of corporation that avoids double taxation by having its income taxed as if it were a partnership.
  4. d A combination of two firms that are in unrelated industries.
  5. e A corporate restructuring in which one firm buys another.

5 Multiple choice questions

  1. A corporation with a limited number of owners that operates under simpler, less formal rules than a C corporation.
  2. An organization that pools contributions from investors, clients, or depositors and uses these funds to buy stocks and other securities
  3. A form of business ownership with a single owner who usually actively manages the company
  4. A corporate restructuring that occurs when two formerly independent business entities combine to form a new organization.
  5. The most common type of business corporation, where ownership offers limited liability to all of its owners, also called stockholders.

5 True/False questions

  1. franchiseThe party in a franchise relationship that pays for the right to use resources supplied by the franchisor

          

  2. articles of incorporationsA form of corporation that avoids double taxation by having its income taxed as if it were a partnership.

          

  3. limited liability companyWhen owners are not personally liable for claims against their firm. Limited liability owners may lose their investment in the company, but their personal assets are protected.

          

  4. franchiseea licensing agreement wherebu a franchisor allows franchisees to use its name, trademark, products, business methods and other property in exchange for monetary payments and other consideration

          

  5. franchisorthe business entity in a franchise relationship that allows others to operate their business using resources it supplies in exchange for money and other considerations

          

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