Exam 5: Forms of Ownership

RK Associates is a firm incorporated in the state of Delaware.The company has operations in thirteen states.However,the company does not have any facilities in countries other than the United States.RK Associates is a(n)________.

Explain the major disadvantages of incorporating a business as a corporation.

Robert owns three restaurants in Atlanta.He pays taxes for the income from the restaurants as his personal income.Robert's business is an example of a ________.

Froxer Electronics is an electronic appliance manufacturer.The company merges with a food manufacturer to form a larger company.This is an example of a ________ merger.

A ________ is a partnership in which each partner has unrestricted accountability only for his or her own actions and at least some degree of responsibility for the partnership as a whole.

A group of college graduates starts a business.They want to give their business a structure such that their risk is limited to the amount they have invested in the business.They also want to avoid double taxation of the income that they generate from the business.Which of the following structures is most suitable to satisfy these wants?

Corporate officers of a company ________.

One company buys a controlling interest in the voting stock of another company in a merger.

Joint ventures ________.

A ________ is an unincorporated company owned by two or more people.

Compare and contrast mergers and acquisitions.

Pacific Electronics is a Swiss corporation doing business in the U.S.It was incorporated in Switzerland,in the year 1997.The company sells products such as electronic measuring devices,microprocessors,and microcontrollers.Pacific Electronics is called a(n)________.

An electronic appliance marketing company merges with one of its suppliers to form a larger company.This is an example of a ________ merger.

Explain the role of corporate officers in corporate governance.

A product-extension merger occurs when ________.

Which of the following statements is true of strategic alliances?

Which of the following is a key difference between private corporations and public corporations?

Compare and contrast a master limited partnership and a limited liability partnership.

Who is the highest-ranked officer of a corporation?

The federal government recognizes a sole proprietorship as an independent taxable entity.