Exam 4: Options for Organizing Business

Marco is an independent contractor who prepares architectural plans for building contractors; however, he is not an employee of any of the contractors for which he works. Marco is a(n)

Frank, Martin, and Paul secure a charter for their business. They hold an organizational meeting to establish the corporation's bylaws and elect a board of directors. What is one thing the bylaws might do?

Describe tactics companies may use to head off a hostile takeover attempt.

An advantage of a corporation over a partnership is that

GasSource, a national provider of natural gas, is a partnership that is traded on securities exchanges. This allows it to have the tax benefits of a limited partnership but the liquidity of a corporation. GasSource is an example of a(n)

A private corporation sells its stock to raise the money it needs for global expansion. As a result, anyone can now buy, sell, or trade the stocks of the company. This process of "going public" is referred to as

Feed & Grow and Boost Products, two fertilizer companies, merge to reduce the number of corporations competing within the fertilizer industry. This merger is an example of a

Pipes R Us, a small plumbing company, decides to incorporate. It wants to have greater flexibility than traditional corporations. What type of corporation would work best for this company?

All of the following are ways technology is helping today's sole proprietors succeed EXCEPT

What is a proxy?

A difference between common stockholders and preferred stockholders within a corporation is that common stockholders

A corporate raider is trying to take over the Cliff Company. In an attempt to avoid this hostile takeover, The Cliff Company is requiring a large majority of stockholders to approve the takeover. Which method of evading a takeover attempt does this describe?

Angelica owns a small hair salon. When a chain hair salon opened across the street from her business, Angelica lowered her prices and added more specialty services, like manicures and facials. Her ability to make these decisions on the spot without anyone else's approval gave her a

Keith wants to buy stock in a large pharmaceutical company. Since he lives in the city where the company is headquartered, he wants to attend its annual meetings and vote for the board of directors. He also wants to maintain a 5 percent ownership of the company, so having priority in purchasing new shares on the marketplace is very important to him. What type of stock should Keith purchase?

Subs and More merges with its supplier, Top Shelf Ingredients, in an effort to have a constant supply of sauce for its sub sandwiches. This is an example of a

Ken is a partner in a local hardware store. He decides to sell his partnership interest. What is one challenge that Ken will face?

Mel owns an auto repair shop. He started the business with a personal loan and is wholly responsible for repaying it. Mel also needs to pay personal income tax on the profits generated from the business. Mel's business is an example of a(n)

Limited partners do not participate in the management of the business.

A strategic alliance occurs when one company purchases another company by buying most of its stock.