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Two Advantages of a Company Structure Are: It Gives Unlimited

question 25

True/False

Two advantages of a company structure are: it gives unlimited liability for managers; and the tax advantages of a limited partnership for investors.


Definitions:

Reverse Stock Split

When the number of outstanding shares is reduced and the market price per share is increased; as the price per share increases, the investor perceives that the stock is worth more.

Outstanding Shares

The total number of all shares issued to investors by a corporation.

Medco Health Solutions

A pharmacy benefits management company that provides pharmacy services, including prescription processing.

Opening Price

The price at which a security first trades upon the opening of an exchange on a given trading day.

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