BUS 110 - Forms of Business Ownership Questions with Accurate Answers

BUS 110 - Forms of Business
Ownership Questions with
Accurate Answers
acquisition correct answer The purchase of a target company by another
corporation or by an investor group typically negotiated with the target company
board of directors.


board of directors correct answer A group of people elected by the stockholders
to handle the overall management of a corporation, such as setting major
corporate goals and policies, hiring corporate officers, and overseeing the firm's
operations and finances.


buyer cooperative correct answer A group of cooperative members who unite for
combined purchasing power.


C corporation correct answer A conventional or basic form of corporate
organization.


conglomerate merger correct answer A merger of companies in unrelated
businesses; done to reduce risk.


cooperative correct answer A legal entity typically formed by people with similar
interests, such as suppliers or customers, to reduce costs and gain economic
power. A cooperative has limited liability, an unlimited life span, an elected board
of directors, and an administrative staff; all profits are distributed to the member-
owners in proportion to their contributions.