Exam 8: Forms of Business Ownership

Which of the following are organizations formed by individuals or businesses with similar interests to achieve greater economies of scale and economic power through collective ownership?

Rama Singh and Allie Jordan are opening a business where they will create and sell packaged assortments of flavoured vinegars with recipe booklets.Since they are planning to operate as a partnership,which of the following represents the best course of action for them?

The two types of cooperatives are wholesale and retail.

Which of the following is a disadvantage associated with a partnership?

How is a corporation's board of directors formed?

A corporation has which of the following characteristics?

North American Van Lines and Allied Van Lines merged to create the world's largest moving company.Prior to the merger,North American was the leading company in moving high-end merchandise such as computer and hospital equipment,while Allied specialized in households.What type of merger is this?

Buying a franchise is not as important a growth strategy today as it was in the 1960s.

A person who buys a franchise has the same level of control as an entrepreneur who opens his or her own sole proprietorship.

List the three major categories of business ownership.

Restricted operating freedom in franchising means that the franchisee must conform to which of the following?

Which forms of business ownership have to deal with the disadvantage of unlimited liability?

If the sole proprietorship acquires a legal business name,the owner then has limited liability.

The merger of McKesson,a leading drug wholesaler,and HBOC,a producer of health-care inventory software,is an example of which of the following type of merger?

The most likely strategies for companies in the future is to continue to seek out large merger opportunities.

Sanford Lee is planning to open a pizza parlour.He has a secret tomato sauce recipe that he does not want to divulge to anyone.Lee also wants to have sole responsibility for all business decisions.What sort of organization should Lee form?

A local lumber company's purchase of a window and door manufacturer is an example of which of the following types of merger?

One of the disadvantages of the sole proprietorship is that the owner has unlimited liability.

Leveraged buyouts (LBO)are inefficient and do not generate enough cash to service the debt that was created by the merger.

When Addison Wilcox buys an H&R Block franchise,he becomes a franchisee.