A corporation chartered by a foreign government and conducting business in the United States.
Alien corporation
The top governing body of a corporation, the members of which are elected by the stockholders
Board of directors
A corporation whose stock is owned by relatively few people and is not sold to the general public
Closed corporation
Stock owned by individuals or firms who may vote on corporate matters but whose claims on profit and assets are subordinate to the claims of others
Common stock
An association of individuals or firms whose purpose is to perform some business function for its members
Cooperative
The chairman of the board, president, executive vice presidents, corporate secretary, treasurer, and any other top executive appointed by the board of directors
Corporate officers
An artificial person created by law with most of the legal rights of a real person, including the rights to start and operate a business, to buy or sell property, to borrow money, to sue or be sued, and to enter into binding contracts
Corporation
A distribution of earnings to the stockholders of a corporation
Dividend
A corporation in the state in which it is incorporated
Domestic corporation
A corporation in any state in which it does business except the one in which it is incorporated
Foreign corporation
A person who assumes full or shared responsibility for operating a business
General partner
A situation in which the management and board of directors of a firm targeted for acquisition disapprove of the merger
Hostile takeover
A situation in which the management and board of directors of a firm targeted for acquisition disapprove of the merger
Hostile takeover
A purchase arrangement that allows a firm’s managers and employees or a group of investors to purchase the company
Leveraged buyout (LBO)
A feature of corporate ownership that limits each owner’s financial liability to the amount of money that he or she has paid for the corporation’s stock
Limited liability
A person who contributes capital to a business but has no management responsibility or liability for losses beyond the amount he or she invested in the partnership
Limited partner
A form of business ownership that combines the benefits of a corporation and a partnership while avoiding some of the restrictions and disadvantages of those forms of ownership
Limited-liability company (LLC)
A business partnership that is owned and managed like a corporation but often taxed like a partnership
Master limited partnership (MLP)
The purchase of one corporation by another
Merger
A corporation organized to provide a social, educational, religious, or other service rather than to earn a profit
Not-for-profit corporation
A corporation whose stock can be bought and sold by any individual
Open corporation
Voluntary association of two or more persons to act as co-owners of a business for profit
Partnership
Stock owned by individuals or firms who usually do not have voting rights but whose claims on dividends are paid before those of common-stock owners
Preferred stock
Legal form listing issues to be decided at a stockholders’ meeting and enabling stockholders to transfer their voting rights to some other individual or individuals
Proxy
A technique used to gather enough stockholder votes to control a targeted company
Proxy fight
A corporation that is taxed as though it were a partnership
S-corporation
A business that is owned (and usually operated) by one person
Sole proprietorship
The shares of ownership of a corporation
Stock
A person who owns a corporation’s stock
Stockholder
A temporary association of individuals or firms organized to perform a specific task that requires a large amount of capital
Syndicate
An offer to purchase the stock of a firm targeted for acquisition at a price just high enough to tempt stockholders to sell their shares
Tender offer
A legal concept that holds a business owner personally responsible for all the debts of the business
Unlimited liability
Over 71 percent of the country's businesses are organized as sole proprietorships.
A. True
B. False
A
Master limited partnerships are taxed like corporations.
A. True
B. False
B
The profits of a sole proprietorship are taxed as personal income of the owner.
A. True
B. False
A
An incorporated business in New York is an alien corporation in Virginia.
A. True
B. False
B
It is often difficult for sole proprietors to borrow large sums of money.
A. True
B. False
A
A leveraged buyout usually requires new stockholders to invest a specific amount.
A. True
B. False
B
All general partners are active in day-to-day business operations.
A. True
B. False
A
A foreign business must incorporate in the state where it does the most business.
A. True
B. False
B
Partnerships must pay a special federal income tax on their business profits.
A. True
B. False
B
Partnerships must pay a special federal income tax on their business profits.
A. True
B. False
B
In partnerships, unlimited liability means the partners are not fully responsible for all debts of the business.
A. True
B. False
B
An advantage of a sole proprietorship is the:
A.
Which form of business ownership is most popular in the United States?
B.
Some partners are called limited partners because:
A.
Company A offers to purchase the stock of Company B, targeted for acquisition, at a price high enough to tempt stockholders to sell. This is known as a/an:
B.
When a manufacturer merges with a supplier, it is called a:
C.
A not-for-profit corporation:
E.
Which statement is NOT true about partnerships?
E.
Which statement is an advantage of a limited-liability company?
B.
Businesses use horizontal mergers to:
B.
Management disagreements can have the most detrimental effect on:
A.
Corporations generate almost 84 percent of all sales revenue in the United States.
A. True
B. False
A
Takeover opponents argue that takeovers enhance corporate profitability and productivity.
A. True
B. False
B
A large number of businesses are incorporated in the state of Delaware because it has low organizational costs.
A. True
B. False
A
Dividends are the earnings distributed from a partnership business.
A. True
B. False
B
The board of directors is elected by the stockholders.
A. True
B. False
A
A proxy lists issues to be decided at a stockholders' meeting.
A. True
B. False
A
Forming a corporation is an easy and inexpensive process.
A. True
B. False
B
The length of time a corporation is to exist is included in the articles of incorporation.
A. True
B. False
A
An S-corporation is taxed as though it were a partnership.
A. True
B. False
A
The main advantages of a partnership over a sole proprietorship are the added capital and management expertise.
A. True
B. False
A
An initial public offering is the term to describe the first time a corporation sells stock to the general public.
A. True
B. False
A
A corporation whose stock can be purchased by anyone and is traded on the stock market is a/an ________ corporation.
D.
When DuPont distributes part of its earnings to its stockholders, what is it called?
B.
An arrangement that allows employees to purchase their company is called a:
C.
General partners are responsible for all debts of the business. They run the risk of using their personal assets to pay creditors. This disadvantage is known as:
D.
A merger between firms that make and sell similar products or services in similar markets is called a:
B.
A corporation incorporated in Massachusetts doing business in New York would be known as a(n):
D.
John invests money in a partnership but is not interested in actively working in the firm. He is called a/an:
A.
Limited partners invest money in a business but are not responsible for any management decisions or losses beyond the original investment. They do not run any risk of using their personal assets to pay creditors. This advantage is known as:
C.
PepsiCo acquired Pizza Hut. What type of merger was this?
