BUSA 4000 Midterm Test Questions
and Answers 100% Verified
What is a merger? - Answer- the combination of two companies (usually corporations)
to form a new larger company
What is acquisition? - Answer- Direct investment or purchase of an existing company or
facility. The focal firm can extend its market reach through readily available distribution
networks.
What is vertical integration? - Answer- The firm owns, or seeks to own, multiple stages
of a value chain for producing, selling, and delivering a product.
What is horizontal integration? - Answer- Arrangement whereby the firm owns, or seeks
to own, the activities involved in a single stage of its value chain.
What is licensing? - Answer- An arrangement in which the owner of intellectual property
grants another firm the right to use that property for a specified period of time in
exchange for royalties or other compensation.
What is franchising? - Answer- Arrangement in which the firm allows another the right to
use an entire business system in exchange for fees, royalties or other compensation.
What is a royalty? - Answer- A fee paid periodically to compensate a licensor for the
temporary use of its intellectual property, often based on a percentage of gross sales
generated from the use of the licensed asset.
What is a patent? - Answer- the right to prevent others from using an invention for a
fixed period. It is granted to anyone who invents a new process, product, or useful
improvement.
What is a trademark? - Answer- distinctive design or symbol that identifies a product or
service. Ex: Nike swoosh
What is copyright? - Answer- protects original works of authorship. Typically covers
works of music, art, literature, movies, or software.
What is protectionism? - Answer- the theory or practice of shielding a country's
domestic industries from foreign competition by taxing imports.
and Answers 100% Verified
What is a merger? - Answer- the combination of two companies (usually corporations)
to form a new larger company
What is acquisition? - Answer- Direct investment or purchase of an existing company or
facility. The focal firm can extend its market reach through readily available distribution
networks.
What is vertical integration? - Answer- The firm owns, or seeks to own, multiple stages
of a value chain for producing, selling, and delivering a product.
What is horizontal integration? - Answer- Arrangement whereby the firm owns, or seeks
to own, the activities involved in a single stage of its value chain.
What is licensing? - Answer- An arrangement in which the owner of intellectual property
grants another firm the right to use that property for a specified period of time in
exchange for royalties or other compensation.
What is franchising? - Answer- Arrangement in which the firm allows another the right to
use an entire business system in exchange for fees, royalties or other compensation.
What is a royalty? - Answer- A fee paid periodically to compensate a licensor for the
temporary use of its intellectual property, often based on a percentage of gross sales
generated from the use of the licensed asset.
What is a patent? - Answer- the right to prevent others from using an invention for a
fixed period. It is granted to anyone who invents a new process, product, or useful
improvement.
What is a trademark? - Answer- distinctive design or symbol that identifies a product or
service. Ex: Nike swoosh
What is copyright? - Answer- protects original works of authorship. Typically covers
works of music, art, literature, movies, or software.
What is protectionism? - Answer- the theory or practice of shielding a country's
domestic industries from foreign competition by taxing imports.
