Question 1

Which of the following is a key disadvantage of mergers and acquisitions?

Accepted Answer

A)  They limit the market reach of the companies involved. 
B)  They reduce the chances of cross-selling products. 
C)  They reduce the bargaining power of the companies. 
D)  They might present issues related to cultural harmony. 
E)  They limit the geographic range of the companies involved. 
A)  They limit the market reach of the companies involved. 
B)  They reduce the chances of cross-selling products. 
C)  They reduce the bargaining power of the companies. 
D)  They might present issues related to cultural harmony. 
E)  They limit the geographic range of the companies involved. D

Question 2

A partnership is a company that is owned by two or more people but is not a corporation.

Accepted Answer

A) True 
 B)False  True

Question 3

A horizontal merger occurs when different companies at the same stage or level merge.

Accepted Answer

A) True 
 B)False  True

Question 4

A company decides to establish a relationship with a local company in order to better its business in a foreign country.The company must choose joint ventures ahead of mergers and acquisitions if it wants to ________.

Accepted Answer

A)  establish a company that is totally different 
B)  create a single management structure 
C)  create a unified business structure 
D)  establish a well-structured arrangement 
E)  avoid disrupting the original companies too much 
A)  establish a company that is totally different 
B)  create a single management structure 
C)  create a unified business structure 
D)  establish a well-structured arrangement 
E)  avoid disrupting the original companies too much

Question 5

With a ________,a targeted company invokes some move that makes it less valuable to the potential raider,with the hope of discouraging the takeover.

Accepted Answer

A)  white knight tactic 
B)  tender offer 
C)  proxy fight 
D)  direct offer 
E)  poison pill defense 
A)  white knight tactic 
B)  tender offer 
C)  proxy fight 
D)  direct offer 
E)  poison pill defense

Question 6

Proxy is a document that authorizes another person to vote on behalf of a shareholder in a corporation.

Accepted Answer

A) True 
 B)False

Question 7

A potentially significant disadvantage of a partnership is that ________.

Accepted Answer

A)  it involves double taxation of the income generated 
B)  income tax is not straightforward and is complex 
C)  it has more chances for disagreement and conflict 
D)  it does not present opportunities to share costs 
E)  the amount of money generated in a partnership is low 
A)  it involves double taxation of the income generated 
B)  income tax is not straightforward and is complex 
C)  it has more chances for disagreement and conflict 
D)  it does not present opportunities to share costs 
E)  the amount of money generated in a partnership is low

Question 8

Liquidity is a measure of how easily and quickly an asset can be converted into cash.

Accepted Answer

A) True 
 B)False

Question 9

A group of friends is planning to start a business.Should they form a formal contract to establish themselves as a partnership? Elucidate the legal and practical aspects of this issue.

Accepted Answer

A carefully written partnership agreemen

Question 10

Albama Associates is a consulting firm owned by a few entrepreneurs.Rogo Consulting,a large consulting firm,tries to buy shares from some of the shareholders of Albama to obtain control of the company without making a formal acquisition proposal with the management.Albama's management invites a third party to acquire the company to prevent a hostile takeover by Rogo Consulting.This approach used by Albama to prevent hostile takeover is an example of a ________.

Accepted Answer

A)  white knight tactic 
B)  counteroffer 
C)  proxy fight 
D)  direct offer 
E)  poison pill defense 
A)  white knight tactic 
B)  counteroffer 
C)  proxy fight 
D)  direct offer 
E)  poison pill defense

Question 11

Establishing a corporation is more complicated and expensive compared to establishing a sole proprietorship.

Accepted Answer

A) True 
 B)False

Question 12

Compare and contrast a limited liability company and a benefit corporation.

Accepted Answer

The limited liability company (LLC)struc

Question 13

A joint venture does not result in a separate legal entity.

Accepted Answer

A) True 
 B)False

Question 14

Compare and contrast a general partnership and a limited partnership.

Accepted Answer

In a general partnership,all partners ha

Question 15

Owner has limited personal liability for the business's financial obligations in sole proprietorships.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following business structures is the most complicated and expensive?

Accepted Answer

A)  unlimited partnership 
B)  corporation 
C)  general partnership 
D)  sole proprietorship 
E)  limited partnership 
A)  unlimited partnership 
B)  corporation 
C)  general partnership 
D)  sole proprietorship 
E)  limited partnership

Question 17

In the United States,a corporation is called a domestic corporation if it ________.

Accepted Answer

A)  does business only in the state where it is chartered 
B)  files income taxes with the U.S. government 
C)  does business only within the United States 
D)  has more than 5 subsidiaries in the United States 
E)  has incorporated its business in any of the U.S. states 
A)  does business only in the state where it is chartered 
B)  files income taxes with the U.S. government 
C)  does business only within the United States 
D)  has more than 5 subsidiaries in the United States 
E)  has incorporated its business in any of the U.S. states

Question 18

Explain the advantages of operating as a sole proprietorship.

Accepted Answer

Operating as a sole proprietorship offer

Question 19

The board of directors are ________.

Accepted Answer

A)  the highest-ranked managers of a corporation 
B)  elected by corporate officers 
C)  representatives of the shareholders 
D)  the top executives running a corporation 
E)  elected by the employees of an organization 
A)  the highest-ranked managers of a corporation 
B)  elected by corporate officers 
C)  representatives of the shareholders 
D)  the top executives running a corporation 
E)  elected by the employees of an organization

Question 20

Board of directors has the responsibility for the overall direction of the company and the selection of top executives.

Accepted Answer

A) True 
 B)False

Which of the following is a key disadvantage of mergers and acquisitions?

A partnership is a company that is owned by two or more people but is not a corporation.

A horizontal merger occurs when different companies at the same stage or level merge.

A company decides to establish a relationship with a local company in order to better its business in a foreign country.The company must choose joint ventures ahead of mergers and acquisitions if it wants to ________.

With a ________,a targeted company invokes some move that makes it less valuable to the potential raider,with the hope of discouraging the takeover.

Proxy is a document that authorizes another person to vote on behalf of a shareholder in a corporation.

A potentially significant disadvantage of a partnership is that ________.

Liquidity is a measure of how easily and quickly an asset can be converted into cash.

A group of friends is planning to start a business.Should they form a formal contract to establish themselves as a partnership? Elucidate the legal and practical aspects of this issue.

Establishing a corporation is more complicated and expensive compared to establishing a sole proprietorship.

Compare and contrast a limited liability company and a benefit corporation.

A joint venture does not result in a separate legal entity.

Compare and contrast a general partnership and a limited partnership.

Owner has limited personal liability for the business's financial obligations in sole proprietorships.

Which of the following business structures is the most complicated and expensive?

In the United States,a corporation is called a domestic corporation if it ________.

Explain the advantages of operating as a sole proprietorship.

The board of directors are ________.

Board of directors has the responsibility for the overall direction of the company and the selection of top executives.

Developing a Business Mindset

Understanding Basic Economics

The Global Marketplace

Business Ethics and Corporate Social Responsibility

Entrepreneurship and Small Business Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Product and Pricing Strategies

Distribution and Marketing Logistics

Customer Communication

Financial Information and Accounting Concepts

Financial Management

Financial Markets and Investment Strategies

The Money Supply and Banking Systems

Filters

Exam 5: Forms of Ownership

Which of the following is a key disadvantage of mergers and acquisitions?

A partnership is a company that is owned by two or more people but is not a corporation.

A horizontal merger occurs when different companies at the same stage or level merge.

A company decides to establish a relationship with a local company in order to better its business in a foreign country.The company must choose joint ventures ahead of mergers and acquisitions if it wants to ________.

With a ________,a targeted company invokes some move that makes it less valuable to the potential raider,with the hope of discouraging the takeover.

Proxy is a document that authorizes another person to vote on behalf of a shareholder in a corporation.

A potentially significant disadvantage of a partnership is that ________.

Liquidity is a measure of how easily and quickly an asset can be converted into cash.

A group of friends is planning to start a business.Should they form a formal contract to establish themselves as a partnership? Elucidate the legal and practical aspects of this issue.

Establishing a corporation is more complicated and expensive compared to establishing a sole proprietorship.

Compare and contrast a limited liability company and a benefit corporation.

A joint venture does not result in a separate legal entity.

Compare and contrast a general partnership and a limited partnership.

Owner has limited personal liability for the business's financial obligations in sole proprietorships.

Which of the following business structures is the most complicated and expensive?

In the United States,a corporation is called a domestic corporation if it ________.

Explain the advantages of operating as a sole proprietorship.

The board of directors are ________.

Board of directors has the responsibility for the overall direction of the company and the selection of top executives.

Developing a Business Mindset

Understanding Basic Economics

The Global Marketplace

Business Ethics and Corporate Social Responsibility

Entrepreneurship and Small Business Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Product and Pricing Strategies

Distribution and Marketing Logistics

Customer Communication

Financial Information and Accounting Concepts

Financial Management

Financial Markets and Investment Strategies

The Money Supply and Banking Systems

Filters