Mie 201 Exam 2: Chapters 4, 5, 8 Makanui Ncsu Review (Questions And Answers)

private corporations {Ans: - few shareholders - stock not publicly traded - stock is held only by a few individuals or companies and is not publicly traded - owners retain complete control over their operations and ownership by withholding their stock from public sale - finance their operating costs and growth from either company earnings or bank loans}vertical merger {Ans: - occurs when a company purchases a complementary company at a different stage or level in an industry - 2 diff. companies ex) Burger King purchasing an Idaho potato farm for its fries}sole proprietorship disadvantages {Ans: - unlimited liability - finite life span - resource limitations - limited managerial experience - demands on owner - no employee benefits for the owner -lack of qualified employees (can't match wage demands)}alien corporation {Ans: - a corporation that operates in the United States but is incorporated in another country}leveraged buyout {Ans: - one or more individuals purchase a company's publicly traded stock by using borrowed funds - usually with the intent of using some of the acquired assets to pay back the loans used to acquire the company ex: Blackstone Group buys Hilton Hotels}nature and consumption of output