Exam 5: Forms of Business Ownership and Organization

News 24/7,a newspaper group,merged with Alfalah Finance,an investment firm.The two companies merged together to diversify their business and to generate more revenue.This merger will be an example of a _____.

Describe how small businesses help create new jobs.

Commercial banks are considered to be financial cooperatives.

List the elements contained in a business plan.

A vertical merger joins firms in the same industry in order to cut costs and promote diversification.

Complete the following using the terms listed. -_____ is a contractual agreement that specifies the methods by which a dealer can produce and market a supplier's good or service.

Strict franchise agreements help to maintain the integrity of the brand.

Which of the following is a reason for Krispy Kreme's near failure?

Large businesses must be organized as corporations.

A drawback of franchising is that:

Traditionally,small businesses tended to be concentrated in the _____ industry.

Which of the following statements regarding franchising is FALSE?

Three members of Abdul's family work at BioTechno,a multi-national drug manufacturer.Each of them owns 5% shares of the company respectively.In fact,most of the employees of BioTechno,like Abdul and his family members,are stockholders of the company.BioTechno can be regarded as a _____.

How do small businesses contribute to the U.S economy?

A sole proprietor is easy to dissolve.

Which of the following statements regarding family-owned businesses is true?

Latifa is a chief financial officer in a large corporation.She has the full financial authority to make appropriations and authorize expenditures.Latifa is likely to be a member of _____ management.

Jose is a stockholder in a software consulting firm.He gets a share of the earnings of the firm,on which he has to pay taxes.Moreover,the firm pays taxes on its earnings.As an individual,Jose is not legally liable to pay off the debts that might be incurred by the firm.In this scenario,the software consulting firm can be regarded as a _____.

Mariana wants to start an event management firm with two of her friends.She decides to create a business plan that will help her in securing financing for her firm.Which of the following should she include in the business plan?

The management of Javier Investments wants to create more job opportunities in their city.They believe that the best way to create more jobs is to help people start their own business.They invest a portion of the company's profit,along with money received through government loans,to support people trying to start their own business.Javier Investments is an example of: