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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.

A. vertical
B. horizontal
C. linear
D. conglomerate

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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.

A. conglomerate; horizontal
B. vertical; horizontal
C. horizontal; vertical
D. conglomerate; conglomerate

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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.

A. intrapreneur
B. franchisee
C. limited partner
D. franchisor

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A franchise can be formed

A. only as a general partnership.
B. only as a corporation.
C. as either a corporation or partnership, but not as a sole proprietorship.
D. as a corporation, partnership, or sole proprietorship.

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Midwest Auto Experts, Inc. sells franchises to prospective businesspersons who want to use the Midwest Auto Experts name and offer its products. In a franchise arrangement, Midwest Auto Experts would be the , and the buyer of the franchise is the .

A. owner; limited partner
B. co-signer; co-signee
C. franchisor; franchisee
D. franchisee; franchisor

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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.

A. vertical B. horizontal C. linear D. conglomerate

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.

A franchise can be formed

Midwest Auto Experts, Inc. sells franchises to prospective businesspersons who want to use the Midwest Auto Experts name and offer its products. In a franchise arrangement, Midwest Auto Experts would be the ________, and the buyer of the franchise is the ________.

A. vertical
B. horizontal
C. linear
D. conglomerate

Midwest Auto Experts, Inc. sells franchises to prospective businesspersons who want to use the Midwest Auto Experts name and offer its products. In a franchise arrangement, Midwest Auto Experts would be the , and the buyer of the franchise is the .