Exam 4: Selecting a Form of Business Ownership

A limited liability company (LLC) combines the advantages of a corporation and the advantages of a partnership without many of the rules and restrictions imposed on regular corporations.

The rationale behind growth through merger or acquisition is that one plus one equals three: the combined company is more valuable than the sum of the two separate companies.

Discuss the motivations behind mergers, acquisitions, and takeovers.

Grainger Company is a major automotive parts manufacturer operating in six countries. It has no restrictions on stock sales and the stock is available to the general public. Grainger Company is a _____ corporation.

Rock City is a community in the Midwest with a population of 23,000 people. Three dental clinics serve the city and the surrounding area. Perfect Smile is owned and operated by the newest dentist in town, Dr. Martin Harris, who employs one dental assistant and a secretary/receptionist. Drs. Joan Bennett and Joseph Young jointly operate Teeth for Life and provide a few more services than Dr. Harris. Rock City Dental Clinic has been in business for 58 years, employs 38 people, and offers a range of services that include dentures, orthodontics, and minor oral surgery. -Given the size of his operation and the fact that he's just opened his office, Dr. Harris is probably organized as a _____.

A very important consideration in picking a legal form of business is

Mary and Diane drafted a partnership agreement for their apparel business. Which element below should not have been included

Any corporation can raise more money than a partnership because it has better credit.