5 Written questions
5 Matching questions
- statutory close corporation
- S corporation
- limited liability
- vertical merger
- conglomerate merger
- a A corporation with a limited number of owners that operates under simpler, less formal rules than a C corporation.
- b A combination of firms at different stages in the production of a good or service
- c A combination of two firms that are in unrelated industries.
- d A form of corporation that avoids double taxation by having its income taxed as if it were a partnership.
- e When 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.
5 Multiple choice questions
- A form of partnership in which all partners have the right to participate in management and have limited liability for company debts.
- The contractual arrangement between a franchisor and franchisee that spells out the duties and responsibilities of both parties.
- The party in a franchise relationship that pays for the right to use resources supplied by the franchisor
- A form of business ownership with a single owner who usually actively manages the company
- A combination of two firms that are in the same industry
5 True/False questions
stockholder → An owner of a corporation.
general partnership → A voluntary agreement under which two or more people act as co-owners of a business and have unlimited liability for any claims against the firm
corporation → A form of business ownership in which the business is considered a legal entity that is separate and distinct from its owners
merger → A corporate restructuring that occurs when two formerly independent business entities combine to form a new organization.
franchisor → the business entity in a franchise relationship that allows others to operate their business using resources it supplies in exchange for money and other considerations