Exam 5: Forms of Ownership

A ________ occurs when someone purchases a company's publicly-traded stock primarily by using borrowed funds,sometimes using the target company's assets as collateral for these loans.

An S corporation has the federal taxation advantages of a partnership.

Compare and contrast sole proprietorships and general partnerships.

All owners in a general partnership and the general partners in a limited partnership face the same unlimited liability as sole proprietors.

A ________ merger occurs when companies in unrelated industries join to form a single entity.

A corporation primarily or wholly owned by another company is known as a(n)________.

Partnerships are subject to double taxation of income.

Carton Life is an insurance firm.The firm wants to enter an Asian country that recently removed protectionist barriers in the insurance industry.The company wants to enter the country with the help of a local firm.However,the company does not want to permanently integrate with another firm.Which of the following arrangements is most suited for this company?

In a general partnership,________.

Unlimited liability is a legal condition under which any damages or debts incurred by a business are the owner's personal responsibility.

In a ________,the raider launches a public relations battle for shareholder votes,hoping to enlist enough votes to oust the board and management.

You work for a European company that is planning to launch business in the United States.The firm is planning to incorporate the new business as a partnership with a domestic firm in the U.S.Present the arguments for changing the company's decision and incorporating the business as a corporation.

In a(n)________,two companies join to form a single entity either by pooling their resources or by one company purchasing the assets of the other.

A sole proprietorship ________.

Which of the following is a valid observation of corporations?

The stock of a private corporation is made available for purchase by the public.

In a(n)________,two companies create a new,third entity that then purchases the two original companies.

Corporate officers of an organization are elected directly by the shareholders of a corporation.

Corporate officers are the ________.

In a sole proprietorship,the owner ________.