1. . A(n) _________ merger is the combination of two or more firms in unrelated industries.
2. . One reason a firm would consider a ____________ merger would be to increase size and market power in its industry.
3. Firms that want to improve the integration of production activities or increase their control over the supply of inputs would be likely to consider a __________ merger.
4. To reduce risk of vulnerability to downturns in single markets, corporations would consider a _______ merger.
5. To increase production capacity and provide consumers with market stability, Exxon and Mobil created ExxonMobil. This would be an example of a _______ merger.
d) limited liability
6. In 1988, Philip Morris, the leading cigarette manufacturer in the United States, merged with Kraft, Inc., the maker of several leading food brands, such as Miracle Whip, Velveeta, and Maxwell House. This combination would be classified as a _________ merger.
7. A _________ calls its owners “members,” not shareholders, and files articles of organization instead of articles of incorporation.
b) conglomerate corporation
c) limited liability partnership
d) limited liability company
8. The _________is a relatively new and increasingly popular form of business ownership that is like a corporation in some ways and like a partnership in others.
a) joint venture
b) limited liability company
d) sole proprietorship
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