Exam 12: Organizations in Concept and Practice

In a _____ the outsider buys the shares with debt collateralized by its other assets, and sometimes also by the target's assets.

Which of the following could a corporation use to raise its initial operating capital?

Assets whose returns have a high positive correlation are considered:

The owner of each share of a corporation's stock:

What are junk bonds?

A _____ generally has less understanding of the firm than a manager and has little knowledge that is likely to improve the quality of the manager's choices.

The management function of a sufficiently large firm should be separated from finance and residual claimancy because of:

_____ have no decision-making powers but can lose no more than what they have invested.

A corporation's _____ can sometimes influence its decisions without making efforts to replace its management.

Independent workers face difficulties in arriving at choices for all of the following reasons, EXCEPT:

Risk-averse people cut their risks by:

In a merger, the outsider buys the shares of a target firm with debt collateralized by its other assets and sometimes by the target's assets.

A single individual performing all of the steps involved in the production of a commodity is usually less productive compared to one who performs only one task.

A hierarchy is usually a group of people who issue orders to subordinates.

Large shareholders can sometimes influence a corporation's decisions without making efforts to replace its management.

An outside organization trying to gain control of a corporation offers a _____ by announcing its intent to purchase up to a certain number of the target's shares at a premium over their market price.

Creditors supply loans to sole proprietors at a high rate of interest because of:

Disagreement between the partners during operation can result in:

Centralizing responsibility for a firm's investments in a single person resolves problems of continuity.

If the owners of different types of resources, which are combined to produce an output, agree on organizational relationships that define their responsibilities toward one another they have formed a _____.