Module 5
owners are not personally responsible for the obligations of the company
A corporation is a separate entity from its owners where the:
a single owner actively manages the company.
A sole proprietorship is a form of business ownership in which:
statutory close corporation
A(n) _____ is a corporation that has limited number of owners that operates under simpler, less formal rules than a C corporation.
limited liability company
A(n) _____ is a form of business ownership that offers both restricted responsibility to its owners and flexible tax treatment.
conglomerate merger
A(n)__________is a combination of two firms that are in unrelated industries.
partnership
A(n)__________is a voluntary agreement under which two or more people act as co-owners of a business for profit.
A C corporation is double taxed, whereas an S corporation is taxed as a partnership.
Which of the following is a difference between a C corporation and an S corporation?
distributorship
A _____ is a type of franchising arrangement in which the franchisor makes a product and licenses the franchisee to sell it.
easier access to funding.
An advantage of franchising is:
target firm
In the context of an acquisition, the firm that is purchased by another firm is called the _____.