chapter 6 my bizlab

privately owned corporations

are owned, in most cases, by a few individuals, such as the company's founders or a group of companies or investors, and shares aren't sold to the public.

A corporation

is legally formed under state laws and is considered a separate entity apart from its owners.

A tender offer

is when the acquiring firm offers to buy the target company's stock at a price higher than its current value.

A joint venture

A partnership in which two or more companies (often from different countries) join to undertake a major project.

occurs when a firm is trying to take over a company to persuade its shareholders to vote out its current management.

A proxy fight

An automobile maker purchasing a company that supplies parts for its vehicles is an example of what kind of a merger?

A vertical merger

Which of the following best describes a sole proprietorship?

It is a business owned, and usually controlled, by a single individual.

Which of the following best describes a merger?

It occurs when two firms voluntarily decide to combine their companies.

Randell Company is a Montana-based mining firm. It wants to take over a competitor, Wygand Mining, which is located in Idaho. As part of the effort, Randell Company offers to buy the stock from Wygand's shareholders for an attractive price. If the move is successful, Randell will oust Wygand's current managers once it takes over the company. Which of the following best describes what Randell is doing?

Making a tender offer

The chief operating officer (COO)

Manages day-to-day activities and reports them to the CEO. oversees daily operations of the company

Which of the following best describes a capital contribution?

The amount of money, equipment, supplies, and other tangible things of value that each partner contributes to a partnership

A C corporation __

The most common type of corporation, which is a legal business entity that offers limited liability to all of its owners, who are called stockholders. must have a board of directors, corporate officers, annual meetings, and annual reporting

Their liability is limited to the amount of capital they contributed to the business.

Which of the following is true of limited partners?

A strategic alliance is

a partnership between companies to jointly develop, produce, or sell products but not create a combined organization.

A corporation's __________ is usually responsible for the entire operation of the organization.

chief executive officer

A __________ is a business owned and governed by members who use its products or services, not by outside shareholders.

cooperative

A ___________ is a specific form of business organization that is legally formed under state laws and is considered a separate entity apart from its owners.

corporation

general partnership,

each partner has unlimited liability for the debts and obligations of the partnership, meaning partners are liable for their own actions, as well as the actions of the other partners and the actions of any employees.

Stella and Mac have pooled their trust funds and opened their own video game salon. They have spent a large amount of money on leather couches, LCD television screens, and the most expensive gaming consoles. Because they contributed equal amounts to the business, they share the profits equally. They have also divided the responsibilities of the business equally and both face unlimited liability. Stella and Mac's business is best described as a ____

general partnership

A sole proprietorship _____

has unlimited liability

limited partnership

is created to encourage partners to contribute capital to a business without risking more capital than they have contributed.

A C corporation and limited liability distributes

its profits to its shareholders.

A product extension merger

occurs when two companies selling different but related products in the same market merge.

product extension merger

occurs when two companies selling different but related products in the same market merge.

A vertical merger

occurs when two companies that have a company/customer relationship or a company/supplier relationship merge.

A conglomeration

occurs when two companies that have no common business areas merge to obtain diversification

conglomeration

occurs when two companies that have no common business areas merge to obtain diversification.

A vertical merger

occurs when two companies that sell the same products in different markets merge.

An acquisition occurs when

one company purchases the property and assumes the obligations of another company. one company buys another company outright.

A ____________ is a business in which the shares of ownership can be sold to anyone who has the means to buy them.

publicly owned corporation

The chief financial officer (CFO)

responsible for analyzing and reviewing the firm's financial performance and budgets, as well as monitoring the firm's expenditures and costs.

Teresa has recently obtained her coaching certification after completing 100 hours of life-skills coaching classes and a written test. She has opened a small coaching institution at her residence that she runs entirely on her own. She coaches young adults in personality development, confidence, and assertiveness. She charges $50 for 2 hours of coaching, and so far she has seven clients. Teresa is operating as a ___

sole proprietor