Exam 8: Forms of Business Ownership

Miniature Precision Corporation,a microprocessor manufacturer,recently acquired Cameron-Price,a plastics mould manufacturer.Miniature Precision financed the transaction with 90 percent borrowed money and used Cameron-Price's assets as collateral.What is this type of merger commonly known as?

Which type of business organization experiences the least governmental regulation?

Which of the following statements best describes the partnership as a form of business ownership?

Mergers create an advantage when competing in the global marketplace.

Tara Bartek owns and operates the Singing Pig Food Company.Bartek makes and markets 20 different gourmet mustards,salsas,marinades,and dip mixes using her crooning pig logo.As a sole proprietorship,the company would have experienced which of the following?

Sam Beauvois has invested $10,000 in his son's pizza restaurant,but takes no part in its management.What is Beauvois?

Double taxation in a corporation is best described by which of the following?

When companies in the same industry merge to achieve economies of scale and to expand their product lines,it is called a horizontal merger.

What is the combination of two companies that join to form one company called?

David Dworkin is the founder of Swoozie's stores.The stores carry diverse lines of wrapping paper,stationery,invitations,and gifts for affluent women.Dworkin supplied the product concept to other individuals who wanted to own and operate their own business without starting from scratch.Which of the following types of a business organization is Swoozie's?

Pete Yankin and Ken Lowery established a company that markets fishing expeditions.Yankin and Lowery share responsibilities for booking the trips,gathering supplies,and guiding groups into locations where they can fish for salmon.Since the two share any profit equally,what sort of business do they have?

Which of the following are corporate takeovers financed by large amounts of borrowed money?

How is the board of directors for a corporation created?

Which form of business ownership is an ideal way to test new business ideas?

In a limited partnership,all of the partners have limited liability.

Which of the following is an innovation in franchising?

The headquarters,seller,and supplier of the service or method of operation of a franchise is called which of the following?

What is double taxation?

Tara Brtek owns and operates the Singing Pig Food Company.Brtek makes and markets 20 different gourmet mustards,salsas,marinades,and dip mixes using her crooning pig logo.Brtek has been thinking about changing her sole proprietorship to a corporation so she can take advantage of which of the following?

Which of the following statements best describes a general partnership?