MODULE 4 QUIZ

why would a company choose to engage in a conglomerate merger instead of a vertical or horizontal merger?

a conglomerate merger is done to reduce risk

IBM purchased MRO Software Inc. for $740 million. MRO was a niche provider of software and services to help customers including nuclear power plants and oil companies. IBM, plans to fold MRO into its software unit. This is an example of a(n):

acquisition

which of the following statements about incorporation is true?

articles of incorporation may vary slightly from state to state

a ___ merger brings together companies in unrelated businesses to reduce risk.

conglomerate

A corporation's earnings are taxed as corporate earnings and as dividends to the stockholders. This is known as:

double taxation

the headquarters, seller, and supplier of the service or method of operation of a franchise is called the:

franchisor

the franchisor generally does NOT provide the franchisee with:

help in employee selection

a corporation:

is one of the easy types of businesses to form

a disadvantage of franchising to the franchisee is:

restricted operating freedom

the most common form of business organization is the:

sole proprietorship