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25 Cards in this Set
- Front
- Back
1. A_____joins two firms in the same industry. |
horizontal merger |
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2. A legal form of business with two or more owners is a_______________. |
partnership |
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3. A________is an arrangement whereby someone with a good idea for a business sells the rights to use the business name and to sell a product or service to others in a given territory. |
franchise agreement |
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4. In a(n)______________one company purchases the property and obligations of another company. |
acquisition |
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5. Limited partners and shareholders have _____________because they are only responsible for the losses of a business up to the amount they invest. |
limited liability |
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6. This unique government creation called a(n) ______________ looks like a corporation but is taxed like sole proprietorships and partnerships. |
S corporation |
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7. A______________ is a company that develops a product concept and sells others the rights to make and sell the products |
Franchisor |
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8. A business proposition that joins firms in completely unrelated industries is called a(n) _______________. |
conglomerate merger |
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9. An agreement such as a(n) _____________ is a partnership with one or more general partners and one or more limited partners. |
limited partnership |
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10. A (n)______________________ looks much like a corporation in that it acts like a corporation and is traded on a stock exchange but is taxed like a partnership and thus avoids corporate income tax. |
Master limited partnership (MLP) |
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11. A legal entity with authority to act, a(n) _______________has liability separate from its owners. |
corporation |
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12. The result of two firms forming one company is a ___________. |
Merger |
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13. A _________ is a person who buys a franchise. |
Franchisee |
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14. A partner is called a___________ when she has invested money in a business but does not have any management responsibility or liability for losses beyond the investment. |
Limited partner |
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15. A company that is similar to an S corporatior; but without the special eligibility requirement is called a (n)______________. |
Limited liability company (LLC) |
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16. A partner who has unlimited liability is called a________ and is active in managing the firm.
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general partner |
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17. A __________________ is a business that is owned and controlled by the people who use it: producers, consumers or workers with similar needs who pool their resources for mutual gain. |
cooperative |
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18. A partnership is called a(n)___________ when all owners share in operating the business and in assuming liability for the business's debts. |
General Partnership |
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19. An attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing is called a(n)_________________. |
Leverage buyout (LBO) |
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20. A ____________is the right to use a business name and to sell a product or service in a given territory. |
franchise |
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21. In the business venture known as a(n) _____________ two companies which are involved in different stages of related businesses join together. |
Vertical Merger |
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22. A business that is owned, and usually managed, by one person is a____________. |
sole proprietorship |
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23. This concept of _________ means that business owners are responsible for all of the debts of a business. |
unlimited liability |
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24. A____________ is one that limits partners' risk of losing their personal assets to only their own acts and omissions and to the acts and omissions of people under their supervision. |
Limited liability partnership(LLP) |
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25. A state-chartered legal entity with authority to act and have liability separate from its owners is a________________. |
Conventional (C) Corporation |