Ex.1. Match the terms with their definitions

1. disclosure

2. corporate culture

3. financial statement

4. due diligence

5. private placement

6. merger

7. venture capital

a) classified as a type A reorganization, in which one corporation absorbs the corporate structure of another, resulting in liquidation of the acquired enterprise. If no BOOT is received, the reorganization may be tax free

b) important source of financing for start-up companies or others embarking on new or turnaround ventures that entail some investment risk but offer the potential for above average future profits; also called risk capital. Prominent among firms seeking venture capital are those classified as emerging growth or high technology companies

c) written record of the financial status of an individual, association, or business organization; it includes a balance sheet and an income statement (or PLA) and may also include a statement of changes in working capital and net worth

d) 1. making a reasonable effort to perform under a contract.

2. making a reasonable effort to provide accurate, complete information. A study that often precedes the purchase of property or underwriting of a loan or investment; considers the physical, financial, legal, and social characteristics of the property and expected investment performance

e) general organizational operating environment including ethical and value structures. It is all – encompassing, affecting employees, management, and customer relations, extending to the types of products and services the organization creates, and including production methods, marketing practices, advertising, and service quality

f) investment or business offered for sale to a small group of investors, generally under exemptions to registration allowed by the Securities and Exchange Commission and state securities registration laws

g) release by companies of all information, positive or negative, that might bear on an investment decision, as required by the Securities and Exchange Commission and the stock exchanges