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Lolgod102010 Flashcards | StudBud
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Lolgod102010
Lolgod102010
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Answers
1
Which form of ownership is the most common?
Sole proprietorships
General partnerships
Master limited partnerships
Corporations
2
Corporations are the easiest form of ownership to start and terminate.
True
False
3
International franchising is:
easy, because you do not have to adapt your product
becoming difficult, and so is not growing
costs about the same as domestic franchising
successful for both small & large franchises
4
The main reason for a conglomerate merger is that:
the business can diversify its business operations
it allows for a firm to offer a variety of related products
it ensures a constant supply of materials
the investors want more for their money
5
A franchise disadvantage is if you want to sell, the franchisor must approve the new owner.
False
True
6
A franchise disadvantage is if you want to sell, the franchisor must approve the new owner.
False
True
7
When a profitable franchise fails simply because other franchisees have failed
failure rate
coattail effect
royalty rate
green ceiling
8
One reason that companies participate in mergers and acquisitions
take the first step toward a join venture
expand within their own field or enter new markets
convert a sole proprietorship into a partnership
do the same thing as the competition
9
In this form, there is no one with whom to share the burden of management
limited liability company
limited partnership
sole proprietorship
S corporation
10
The merger between Daimler (German automaker) & Chrysler (American automaker) was verticle.
True
False
11
One benefit of a sole proprietorship is the easy availability of funds
True
False
12
When going into a partnership, you should always:
make sure that you have limited liability
put all terms of the partnership into writing
make sure all the profits are reinvested
divide the profits equally
13
An S corporation avoids the double taxation of a conventional C corporation.
True
False
14
The owners of a corporation are called:
Stockholders
limited partners
proprietors
general partners
15
One of the advantages of a franchise is:
fewer restrictions on selling
lower start up costs
you get to keep all the profits of your business
receiving management and marketing expertise
16
software company and a fast food restaurant company decide to merger
horizontal merger
linear merger
vertical merger
conglomerate merger
17
One advantage of a corporation is the limited liability of the owners.
True
False
18
A franchise can be formed as a sole proprietorship, a partnership, or a corporation
False
True
19
In a leveraged buyout a company buys all of the stock of a firm & takes it off the open market.
False
True
20
When Pat Sloane bought a Tidy Maid franchise, she became a:
venture capitalist
Franchisee
franchisor
Stockholder
21
It is relatively easy to get in and out of business when you are a sole proprietor
False
True
22
A disadvantage in a partnership is the potential for disagreements among the partners
False
True
23
Individuals are not permitted to incorporate.
True
False
24
This stock is not available to the general public through a stock exchange
private corporation
alien corporation
domestic corporation
public corporation
25
Can have only 100 shareholders, who are permanent US residents
S corporation
limited liability partnership
private corporation
conventional C corporation