Bus 101 Midterm questions with verified answers
Difference between merger and acquisition. What is a hostile takeover?
Ans✓✓✓A merger is when two companies merge to form a new
company. Acquisition is where one company purchases the other but no
new business is formed.
Hostile takeover is when a company buys another company that didn't
want to be bought.
Different forms of business ownership Ans✓✓✓Sole Proprietorship
-business owned by only one person.
-High responsibility and risk
-all business profit is your profit.
Partnership
-business owned by two or more people
-still high risk due to unlimited liability
-more diverse group of people
-easier financing
-shared decision making
Corporation
-limited liability
-stake holders are not responsible for the obligations of the corporation.
, -longevity
S-corps
Limited-liability companies
Cooperatives
Non-for-profit corporations
Micro vs macro economics Ans✓✓✓Micro is individual and business
economics while macro is government and country economics.
Pros and cons of franchising Ans✓✓✓Pros
-help in picking a location
-right to use a companies brand and sell its products
-help starting and operating the business
-help advertising.
Cons
-expensive
-play by the franchisers rules
-they dictate what you can sell, the methods to store prepare and serve
the food, and the price you sell it at.
-franchisers don't always keep promises.
Difference between merger and acquisition. What is a hostile takeover?
Ans✓✓✓A merger is when two companies merge to form a new
company. Acquisition is where one company purchases the other but no
new business is formed.
Hostile takeover is when a company buys another company that didn't
want to be bought.
Different forms of business ownership Ans✓✓✓Sole Proprietorship
-business owned by only one person.
-High responsibility and risk
-all business profit is your profit.
Partnership
-business owned by two or more people
-still high risk due to unlimited liability
-more diverse group of people
-easier financing
-shared decision making
Corporation
-limited liability
-stake holders are not responsible for the obligations of the corporation.
, -longevity
S-corps
Limited-liability companies
Cooperatives
Non-for-profit corporations
Micro vs macro economics Ans✓✓✓Micro is individual and business
economics while macro is government and country economics.
Pros and cons of franchising Ans✓✓✓Pros
-help in picking a location
-right to use a companies brand and sell its products
-help starting and operating the business
-help advertising.
Cons
-expensive
-play by the franchisers rules
-they dictate what you can sell, the methods to store prepare and serve
the food, and the price you sell it at.
-franchisers don't always keep promises.
