Business Dynamics mod 5
distributorship
A _____ is a type of franchising arrangement in which the franchisor makes a product and licenses the franchisee to sell it.
owners are not personally responsible for the obligations of the company
A corporation is a separate entity from its owners where the:
vertical merger
A large film production company merges with a popular sound processing studio, resulting in the formation of a new company out of the two previously independent firms. This is most likely an example of a _____.
a single owner actively manages the company.
A sole proprietorship is a form of business ownership in which:
statutory close corporation
A(n) _____ is a corporation that has limited number of owners that operates under simpler, less formal rules than a C corporation
limited liability company
A(n) _____ is a form of business ownership that offers both restricted responsibility to its owners and flexible tax treatment
conglomerate merger
A(n)__________is a combination of two firms that are in unrelated industries.
partnership
A(n)__________is a voluntary agreement under which two or more people act as co-owners of a business for profit
A C corporation is double taxed, whereas an S corporation is taxed as a partnership.
Which of the following is a difference between a C corporation and an S corporation?
In limited liability partnerships, all the partners actively participate in the management of the company, whereas in limited partnerships, only the general partners actively manage the company
Which of the following is a difference between limited partnerships and limited liability partnerships?
The negative halo effect
Which of the following is a disadvantage of franchising for a franchisee?
easier access to funding.
An advantage of franchising is
target firm
In the context of an acquisition, the firm that is purchased by another firm is called the _____.
