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Chapter 6 Forms of Business Ownership

Quiz by Joann Larson

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23 questions
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  • Q1

    Two companies that have no common business areas merge to obtain diversification

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    30s
  • Q2

    Occurs when two companies of similar size mutually agree to combine to form a new company.

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    30s
  • Q3

    The effect achieved when two companies combine.

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  • Q4

    Two companies that have a company/customer relationship or a company/supplier relationship, such as Walt Disney and Pixar or eBay and PayPal,

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    30s
  • Q5

    The obligation to pay a debt.

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  • Q6

    A regular corporation that does not pay income tax.

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  • Q7

    Two companies that share the same product lines and markets and are in direct competition with each other, such as Exxon and Mobil and Daimler-Benz and Chrysler

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    30s
  • Q8

    Is investments in the form of money, equipment, supplies, computers, and other tangible things of value.

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  • Q9

    A COO is responsible for the day-to-day operations and reports to the CFO.

    false
    true
    True or False
    30s
  • Q10

    A chief financial officer, with responsibility for the entire operation.

    false
    true
    True or False
    30s
  • Q11

    A CEO is the chief executive officer, responsible for the entire operation.

    true
    false
    True or False
    30s
  • Q12

    Usually set policy for the corporation and make the major business and financing decisions.

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  • Q13

    Occur when one company completely buys out another company.

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  • Q14

    This occurs when the taxes are paid on the same asset twice.

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  • Q15

    Someone who has ownership interest in the company.

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