The Most Effective Form of Business Organization for Raising Capital

question 144

Multiple Choice

The most effective form of business organization for raising capital is the

• A) joint venture.
• B) syndicate.
• C) sole proprietorship.
• D) partnership.
• E) corporation.

---

Definitions:

Financial Merger

The combination of two or more companies, primarily through the acquisition of stock, to form a single financial entity.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Undervalued Target

A company or investment asset that is available for purchase at a price less than its intrinsic value.

Congeneric Merger

A type of acquisition where two companies operate in the same industry but do not offer the same products or services.