Management Chapter 4

private corporation

A ____ is owned by just one or a few people who are closely involved in managing the business

corporate charter

A legal document that the state issues to a company based on information the company provides in the articles of incorporation is called a ____

partnership

A limited liability company is taxed like a ____

horizontal

A merger of two firms that sell similar products to the same customers is a ____ merger

partners pay taxes at the income rate for individuals

How is taxation handled in partnerships?

initial investment

In a partnership, the liability of limited partners is limited to their ____

conglomerate

The joining of firms in completely unrelated industries is a ____ merger

vertical

The joining of two companies involved in different but related levels of an industry is called a ____ merger

acquisition

The purchase of one company by another, usually by buying its stock, is an ____

merger

The result of two firms (usually corporations) combining to form one company is called a ____

common

The right to vote for the board of directors is given to ____ stockholders

industries

The three types of mergers are differentiated by analyzing whether the companies merging are in the same, related, or different ____

the money or assets that each partner has contributed, state each partner's individual management role or duty, specify how the profits and losses of the partnership will be divided among the partners

Three things that are usually listed in the articles of partnership.

Articles of Partnership

What legal document sets forth the basic agreement between partners and is required to start a partnership?

perpetual life

When a corporation is separate from its owners and does not terminate with the death of one owner, the corporation has ____

acquisition

Where one company purchases the property and obligations of another

sole proprietorship

Which form of business allows for the greatest degree of secrecy?

quasi-public

____ corporations are owned and operated by the federal, state, or local government

owner

All profits from a sole proprietorship belong exclusively to the ____

money

As an entity, cooperatives are not set up to make ____

sole proprietorships

Businesses owned and operated by one individual, and are the most common form of business organization in the United States