Question 1

Intercontinental Provisions, a specialty grocery store, is considering a conglomerate merger with a company that makes storage solutions. A likely reason is

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Question 2

Kooky Cookies Corporation purchased the Crazy Cookie Company. Although this was initially an acquisition, the merging of these two businesses was a ________ merger. Kooky Cookies went on to purchase several baking product companies. Joining forces with some of its suppliers would represent a ________ merger.

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Question 3

A(n) ________ is an arrangement whereby someone with a proven idea for a business sells the rights to use the business model, to sell a product or service to others in a given territory.

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Question 4

Foreign investment in U.S. companies continues to be strong. When Belgian-based In-Bev purchased the largest beer company in the U.S., Anheuser-Busch, this action constituted a(n) ________ with a negotiated selling price of $52 billion.

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Question 5

The difference between a merger and an acquisition is

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Question 6

Kevin is a major stockholder in Professional Transmission Services (PTS), a nationwide network of transmission repair shops founded in 1975 by his father. Currently, PTS stock is sold on the open market, but Kevin has talked to several relatives about his desire to get all of the PTS stock back in his family's hands. Kevin is interested in ________.

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Question 7

When investors successfully take a firm private, the company's stock is

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Question 8

Silver Screen Pictures, Inc. recently bought Superstar Entertainment, Inc. for an undisclosed amount of money. It now owns all of Superstar Entertainment's properties and obligations. This is an example of a(n)

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Question 9

Hidden Valley Communications, Inc., located in a remote area of Utah, made a special device that was used in LTE phones. After three years of local operations, the company that employed 4,000 people was planning to close its Utah operation and move the assembly offshore. Under the direction of a financial services company that financed the deal, the employees agreed to become owners of the company and continue to operate the business. The business concept that describes this arrangement is

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Question 10

An attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing is called a(n)

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Question 11

A(n) ________ is a company that has a proven business model and is willing to sell the rights to use the business model to others so that they can sell the same product or service within a given territory.

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Question 12

A person who buys the right to use a business name and sell a product within a given territory is called a

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Question 13

A merger involving a software producer and a clothing manufacturer is an example of a ________ merger.

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Question 14

A franchise can be formed

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...

Question 15

A merger involving a commercial bakery and a grocery retailer would be an example of a ________ merger.

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Question 16

The strategy of investors who are attempting a leveraged buyout is to

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Question 17

One result of taking a firm private is

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Question 18

If a group of stockholders or management obtain all the stock of a previously publicly traded firm for themselves, this is referred to as

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Question 19

When two firms which do not participate in the same industries, for example, a software company and a fast food restaurant company, decide to merge, the result is called a ________ merger.

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Question 20

In a leveraged buyout, the managers of a firm, its employees, or other investors

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Quiz 5: How to Form a Business