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
