When a Stock Underwriter Acts as the Company's Agent in Selling

question 24

Multiple Choice

When a stock underwriter acts as the company's agent in selling stock,it is called a

• A)company underwriting.
• B)express underwriting.
• C)firm commitment underwriting.
• D)best efforts underwriting.

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Definitions:

Partnership

A lawful business structure operated by two or more people, who are both responsible for managing the business and sharing its earnings.

S Corporation

A special type of corporation in the United States that meets specific Internal Revenue Service criteria and elects to be taxed as a pass-through entity, avoiding double taxation on corporate income.

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership and a stake in the company's profits and decision-making.

Limited Partnership

A business partnership where at least one partner has unlimited liability and one or more partners have limited liability, only responsible for the money they have invested.