Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
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- 9. When starting a business, choosing which kind of business entity to form is an important decision with many implications. Why might venture capitalist prefer to invest in a C corporation? Group of answer choices A. Because the C Corporation is easier to merge, sell, or take public B. Because the laws of an LLC are still too uncertain C. The capital gains tax is more favorable under a C Corps D. All of the Above E. A and B onlyarrow_forwardYou have recently been accepted as a new member of the board of directors for a state- wide volunteer organization. To present your expertise and to establish your dedication, you offer to develop a presentation about corporate governance for the organization's annual orientation. The executive manager is delighted at this prospect and requests that, along with laws or related information, you provide recommendations for building and sustaining a strong, successful company. Instructions Prepare a Microsoft PowerPoint presentation. Include speaker notes in the Notes pane on each slide to explain the details of your presentation. Your presentation should include the items below. Title slide Introduction with an overview and purpose of the presentation Three to five slides that: Identify at least two (2) laws that might impact the business. Resources that may be useful are the U.S. Department of Labor website, the U.S. Equal Employment Opportunity Commission, and/or the U.S. Small…arrow_forwardDiscuss the issues raised by the Board of ABC regarding the appointment of an internalauditor. In your discussion, recommend how the issues can be resolved.arrow_forward
- Which is the best anti-hostile takeover strategy that can be made by an entity when there is a high chance that potential acquirers would be using a proxy fight approach in an acquisition?a. Staggered Board of Directorsb. Backend Plansc. Lobster Trapd. Whitemailarrow_forwardDiscuss the issues raised by the Board of ABC regarding the appointment of an internalauditor. In your discussion, recommend how the issues can be resolved.arrow_forwardDiscuss the issues raised by the Board of ABC regarding the appointment of an internalauditor. In your discussion, recommend how the issues can be resolved.arrow_forward
- Best practices of good corporate governance include: a. Filling the majority of board positions with the best performing managers of the firm b. Holding regular board meetings without the presence of the company's CEO c. Combining the responsibilities of the board chairperson with the chief executive officer d. Holding frequent closed board elections e. None of these are corporate governance best practicesarrow_forwardThe key to incorporate of a company is that: A. A company is it's human entities such as directors. B. A company is a non human entity with legal privileges C. An incorporate association can make profit and pay taxes D. None of the above.arrow_forwardWhich answer best describes shareholders taking control of management through takeover action? Replace management by hiring college graduates. O Replace management by electing board members who can replace them. O Replace management by having lower levels take over daily operations None of the above.arrow_forward
- What is one of the primary roles that agency law plays in partnerships? Group of answer choices: A. Controls formation of the entity. B. Dictate how the partners can operate the business. C. Whether or not a partner can bind the partnership to obligations or liabilities. D. Dictates what the operating agreement must state..arrow_forwardWhat is the most common type of corporate foundation? A. Company sponsored foundation B. A limited liability corporation (L3C) C. Community foundation D. Nonprofits that operate on behalf of the corporationarrow_forwardWhich of the statements-relatedto stakeholder conflict in businessis FALSE? A. Stakeholders are those who own the business and they may have differences in opinions on the direction of the business.B. Agency conflict is present when the agent does not act in accordance to the expectations of the principal.C. An example of an agent is the board of directors who represents the numerous stockholders.D. Rank and file employees may prioritize achieving the identified performance measures to obtain additional financial compensation but in doing so, may cause concerns to other employees and departments.arrow_forward
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