Question 1

When Compaq and Hewlett-Packard decided to become one company, this was an example of a(n)

Accepted Answer

A)  acquisition. 
B)  hostile takeover. 
C)  horizontal merger. 
D)  conglomerate merger. 
E)  joint venture.

Question 2

Which of the following statements is true?

Accepted Answer

A)  Economists and financial analysts agree that mergers are good for the economy. 
B)  Takeovers always increase a firm's productivity. 
C)  Mergers in the first part of the twenty-first century will see an increase in debt financing. 
D)  Mergers in the first part of the twenty-first century will be driven by cash-rich companies looking to acquire businesses that will enhance their position in the marketplace. 
E)  There will be fewer mergers that involve investors from other countries.

Question 3

Kayla purchases shares of ownership in General Electric.These shares are referred to as

Accepted Answer

A)  ownership documents. 
B)  stock. 
C)  articles of ownership. 
D)  incorporation. 
E)  corporate certificates.

Question 4

A merger between two firms that make and sell similar products in similar markets is known as a

Accepted Answer

A)  horizontal merger. 
B)  cooperative. 
C)  joint venture. 
D)  vertical merger. 
E)  conglomerate merger.

Question 5

A general partner is responsible for any debts of the partnership, regardless of whether he or she was directly involved in the transaction that created the debt.

Accepted Answer

A) True 
 B)False

Question 6

Tiffany is about to finish her degree in business management and wants to find a job that will provide her with opportunities to advance within an organisation.What type of business organisation should Tiffany work for?

Accepted Answer

A)  A sole trader 
B)  A small family-owned business that is incorporated 
C)  A partnership 
D)  A corporation 
E)  An unlimited partnership

Question 7

Joint ventures are created for a specific purpose and dissolved when that purpose is achieved.

Accepted Answer