Chapter 9 - Business Firms

The three types of franchises are retail, wholesale, and....

• corporate
• entrepreneurial
• service-sponsored
• None of these

McDonald's and Burger King merging would be an example of a ....

• Horizontal Merger
• Vertical Merger
• Diagonal merger
• Conglomerate Merger

Most of the dollar sales in the United States are earned by...

• Proprietorships
• Partnerships
• Entrepreneurs
• Corporations

A company must issue stock and pay dividends to qualify for a line of credit.

• True
• False

All of the following are disadvantages of a corporation except:

• ability to hire specialized management
• activities are limited to those stated in the articles of incorporation
• double taxation of profits
• less direct owner control

Ford Motor Co. merging with a steel plant would be an example of a....

• Diagonal merger
• Horizontal merger
• Conglomerate merger
• Vertical merger

A type of asset that grants the holder part ownership without a voice is....

• Common Stock
• Line of credit
• Preferred Stock
• Interest earnings

Conglomerates are formed when two or more firms....

• in the same industry combine to form a single firm
• split off to start separate businesses in different industries
• split off to start separate businesses in the same industry
• in completely separate industries combine to form a single firm

? is the concept that an owner's personal assets can be used to pay the bills of the business.

• Unlimited liability
• Limited liability
• Limited debt
• Total revenue

A written application to the state requesting permission to form a corporation is

• a charter
• articles of incorporation
• contract
• None of these