Chapter 1

Chapter 1 Summary LO 1: Understand and explain different methods of disdain expansion, types of organizational structures, and types of acquisitions * Complexity arises when companies do business across estate and national boundaries * Has its own set of laws, tax provisions, and risks * Enterprise Expansion * By expanding into new markets or acquiring other companies already in those markers, companies can develop new earning potential and those in alternating(prenominal) industries can add greater stability to earnings with diversification. * Managers also get rewarded higher salaries as their companies increase in size * The reputation of companies also grow with comp any size * Organization social structure and Business Objectives * Complex organizational structures often evolve to divine service achieve business objectives, such as increasing lucrativeness or reducing risk. * Subsidiary: a corporation that is controlled by another company referred to as a parent company, commonly through majority monomania of its common stock.

* Organizational Structure, Acquisitions, and honest Considerations * Special-purpose entity: a financing vehicle that is not a satisfying operating entity, usually one created for a single specify purpose * Business Expansion and forms of Organizational Structure * Internal Expansion * Spin-off: occurs when the ownership of a newly created or existing subsidiary is distributed to the parents stockholders without the stockholders surrendering any of their stock in the parent company * Split-off: when the subsidiary shares are transfer for shares of the parent, thereby leading to a reduction in the large shares of the parent company. * External Expansion through Business Combinations * folksy Arrangements * Formal Agreements * Frequency of Business Combinations * Complex Organizational Structures LO 2: Make... If you want to get a full essay, order it on our website: Ordercustompaper.com

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