Blackstone Handicapped Ourselves With Corporate Form, Schwarzman Says

Blackstone Handicapped Ourselves With Corporate Form, Schwarzman Says

Assessment

Interactive Video

Business, Social Studies

University

Hard

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The video discusses the strategic decision by Ares KKR to change its corporate form to access a larger pool of investment capital. By altering their structure, they aim to double the amount of money that can invest in their stock, both domestically and internationally. The change also simplifies tax reporting for investors, making it more appealing to retail investors. Despite a slight increase in taxes, the potential benefits for shareholders and the ability to reach a broader audience are deemed worthwhile.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary reason Ares KKR decided to change their corporate form?

To reduce operational costs

To access a larger pool of investment funds

To improve employee benefits

To expand into new markets

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How much additional investment does Ares KKR expect to access by changing their corporate form?

$4.5 trillion

$6 trillion

$2 trillion

$1 trillion

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What tax form is considered cumbersome for regular investors?

1099

1040

K1

W-2

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What form will Ares KKR switch to in order to simplify the investment process for retail investors?

1040

K1

1099

W-2

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why does Ares KKR believe paying more taxes is beneficial?

It will reduce their overall expenses

It will allow them to reach a larger audience of potential investors

It will improve their corporate image

It will help them comply with new regulations