D362 Corporate Finance
1. A professional landscaper owns a company with unlimited liability and hires employees to work on projects.
Which type of business entity is described in this scenario?
2. Two entrepreneurs form an entity without investor support. They agree to share the responsibility for liabilities associated with starting the new entity.
Which type of organization should these entrepreneurs pursue?
3. Two small business owners form an entity. Each wants to avoid being held responsible in the event of the other partner’s misconduct.
Which type of organization will benefit the business owners?
4. Rusty RoboTech and Wild Parsley Grill want to partner together to expand distribution networks into foreign countries and share the cost of advertising and distribution.
Which type of business arrangement should be formed?
5. A publicly traded home construction company wants to influence the purchase price of lumber from a supplier without large changes in the company’s stock price.
Which action should be taken to accomplish this goal?
6. An entrepreneur has started a coffee shop that has become popular locally and wants to maximize returns. The entrepreneur prefers to avoid taking on extra debt to expand and prefers to operate independently.
How should the entrepreneur grow profits given the entrepreneur’s limitations and benefits?
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