QUESTION Which of the following is an example of a merger? A) David’s Dogs was a hot dog stand in downtown Detroit. Tim’s Diner opened a restaurant on David’s corner. David’s Dogs did such a great business that Tim’s sales suffered. So Tim purchased David’s Dogs and brought the hot dog sales inside his diner, […]
Date: September 3rd, 2020
QUESTION What is the basic purpose of most cooperatives? A) to make a profit for its members B) to provide a service to its members C) to pay dividends to its members D) to make a profit for its customers E) to pay dividends to its customers ANSWER Answer: B Explanation: B) The purpose […]
Date: September 3rd, 2020
QUESTION Which is an example of a horizontal merger? A) Abbott Laboratories merging with Blue Cross Blue Shield B) FedEx merging with UPS C) JCPenney merging with Staples D) Apple Computer merging with Kellogg’s E) Paramount Pictures merging with Burger King ANSWER Answer: B Explanation: B) A horizontal merger is when two companies that […]
Date: September 3rd, 2020
QUESTION What is the largest franchise industry in the United States? A) lodging B) fast-food restaurants C) services D) non-fast-food restaurants E) retail sales ANSWER Answer: B Explanation: B) The largest franchise industry in the United States is fast-food restaurants, followed by retail sales, services, automotive, restaurants, maintenance, building and construction, retail-food, and lodging.
Date: September 3rd, 2020
QUESTION Which of the following is an example of an acquisition? A) Antarctic Ice Company sold ice in large quantities to hotels, restaurants, and conference centers in the southeastern United States. Penguin Ice did the same thing in the midwest. When Penguin Ice wanted to expand, it bought out Antarctic Ice Company and changed the […]
Date: September 3rd, 2020
QUESTION Juanita bought a franchise in which she makes Tooty Frooty soft drinks with supplies she purchases from the franchisor and sells the product to local grocery stores. What kind of franchise did Juanita buy? A) a product-distribution franchise B) a franchise outlet C) a business-format franchise D) a manufacturing franchise E) a chain store […]
Date: September 3rd, 2020
QUESTION A corporate raider is urging shareholders to vote for his choice of persons to fill the board of directors seats. What is happening? A) a proxy fight B) a tender offer C) a leveraged buyout D) an employee buyout E) a poison pill scenario ANSWER Answer: A Explanation: A) A proxy fight happens […]
Date: September 3rd, 2020
QUESTION When you have the rights to sell a franchisor’s trademarked product purchased from the franchisor, what kind of franchise are you? A) a distributorship B) a chain store C) a franchise outlet D) a manufacturing franchise E) a business-format franchise ANSWER Answer: A Explanation: A) A distributorship, or a product-distribution franchise, is a […]
Date: September 3rd, 2020
QUESTION What is a tender offer? A) a request that a shareholder vote for a corporate raider’s handpicked candidates for a company’s board of directors in hopes of taking over the company B) an offer to buy stock from shareholders at a price that exceeds the present market price in hopes of taking over the […]
Date: September 3rd, 2020
QUESTION Raj loves cars. He wants to buy a product-distribution franchise in the automotive industry. Which company should he purchase? A) a car rental company in which Raj pays for the rights to use a company’s name B) a car sales showroom in which Raj sells cars previously bought and sold C) a car repair […]
Date: September 3rd, 2020
