BUS&101 Chpt 5

A company similar to an S corporation but without the special eligibility requirements is an:

LLC

One company's purchase of the property and obligations of another is called a(n):

acquisition

In a franchise, having management support from the franchisor is a(n) ______ whereas the coattail effect is considered a _______

advantage, disadvantage

In addition to the articles of incorporation, a corporation has ______, which describe how the firm is to be operated from both legal and managerial points of view.

bylaws

The actions of a fellow franchisee will affect your franchise. This is known as the

coattail effect

When producers, consumers, or workers with similar needs pool their resources for mutual gain, they start a(n):

cooperative

A major disadvantage of the corporate form deals with the tax situation called ___ taxation

double

Many minority business owners prefer a(n) ________ because it offers business connections and support.

franchise

Relief from the stress of commuting, extra time for family activities, and low overhead expenses are all advantages of _____ ______ franchises.

home-based

When two firms operating in the same industry join, it is called a(n) _______ merger.

horizontal

A _______ partnership has partners who do not share in operating the business.

limited

When two firms join together to form one new company, it is called a(n)

merger

An S corporation has the liability protections of a corporation but is taxed like a:

partnership/sole prorietorship

An advantage of partnerships is a longer ___ rate than sole proprietorships, because they become more disciplined and the business's life is based on all the partners.

survival

When two firms operating in different stages of related businesses join, it is called a(n) ______ merger.

vertical