Question
In a scenario with few owners wanting control and privacy, which corporate form fits best?
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Answer
A private corporation.
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Question
Why might a public company choose to go private in an LBO or MBO?
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Answer
To reduce disclosure obligations and increase control.
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Question
What liability feature makes a general partnership dangerous for each partner?
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Answer
Each partner has unlimited, joint liability.
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Question
Why does a firm's organizational form matter before it raises capital or invests?
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Answer
It determines liability, taxation, ownership transfer, management, and financing capacity.
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