Although It Is a Small Company, Zorn Enterprises Owns a Large

question 130

Multiple Choice

Although it is a small company, Zorn Enterprises owns a large number of inexpensive rental housing units in Texas and Louisiana. Currently, the company is a chartered C corporation, but the owners are interested in switching to be an S corporation. After consulting a lawyer, they learned that Zorn Enterprises does not qualify to be designated as an S corporation. Which of the following characteristics of Zorn Enterprises would prevent it from becoming an S corporation?

• A) The firm has fewer than 75 stockholders.
• B) The firm is chartered in one state, but owns property in another.
• C) The firm has only one class of stock, all owned by U.S. citizens.
• D) The firm receives more than 70 percent of its income from rents and other passive sources.

Understand different conflict management styles and identify characteristics of each.

Identify common causes of conflict in organizations.

Recognize the expression and types of conflict (e.g., felt, perceived, manifest).

Understand the role of authoritative command in conflict resolution.

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Definitions:

Value

Value refers to the importance, worth, or usefulness of something, often determined by its desirability, utility, or monetary worth in economic contexts.

In The Money

A term describing an option contract that would lead to a positive cash flow to the holder if it were exercised immediately.

Underlying Stock Price

The price of the stock that an option gives a holder the right to buy or sell.

Exercise Price

The price at which the holder of an options contract may buy or sell the underlying security.