Chapter 6 Forms of Business Ownership
Quiz by Joann Larson
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- Q1
Two companies that have no common business areas merge to obtain diversification
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Occurs when two companies of similar size mutually agree to combine to form a new company.
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The effect achieved when two companies combine.
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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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The obligation to pay a debt.
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A regular corporation that does not pay income tax.
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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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Is investments in the form of money, equipment, supplies, computers, and other tangible things of value.
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A COO is responsible for the day-to-day operations and reports to the CFO.
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A chief financial officer, with responsibility for the entire operation.
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A CEO is the chief executive officer, responsible for the entire operation.
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Usually set policy for the corporation and make the major business and financing decisions.
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Occur when one company completely buys out another company.
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This occurs when the taxes are paid on the same asset twice.
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Someone who has ownership interest in the company.
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