Corporate Structures Ans Ownership

Question 1

Non provit corp can generate profit?

Answer 1

Yes, but they MUST be reinvested

Question 2

When companies are characterized as public?

Answer 2

In many countries, when they have 50 > shareholders

AND get more regulatory EVEN the company is not LISTED on a Stock Exchange

Question 3

For companies, Wich is more risky, stocks or bonds?

Answer 3

Bonds. Increasing leverage

Question 4

How bond holders can become share holders thought non-market-based?

Answer 4

BUSINESS REORGANIZATION
In case of a Bankruptcy
Companies chooses to turn bond holders into shareholders
Current shareholders will be wiped out

Question 5

Potential conflicts between Bond and equity holders

Answer 5

Bond receive a fixed income
No interested in increase the risk
No benefits from that

Question 6

Reason to declining become public and ways to go private in Developed markets

Answer 6

1. M&A. Private acquires public or Public x Public
2. LBO and MBO
3. Choose to still private. Taking cash from VC, PEquiy or PDebt and
   AVOID DE REGULATORY BURDEN

Question 7

Owner exposed to the LEAST BUSINESS LIABILITY (responsabilidade)

Answer 7

Partner in General Partnership

Question 8

How many GP a Limited partnership needs to has?

Answer 8

Must have at least ONE General Partner

This guy is responsible for the management of the business

Question 9

Sole proprietorship (3)
(Solo trader)

Answer 9

Assumes all the risk
Operational simplicity
Flexibility

Question 10

Key features of LIMITED PARTNERSHIP model ( GP and LParteners risk and power)

Answer 10

GP operating the business - Unlimited Liability, control

Limited Partners - Limited Liability, Lack of control

Question 11

1. How many owners a General Partnership at least should have
2. How the owners know what are their responsibilities?

Answer 11

2 or more owners

Responsibilities outlined in a partnership agreement