Colorado Nursing Home Administrators (NHA) Practice Exam

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When is it considered a change of ownership for a corporation?

Change in company name
Transfer of at least 50% ownership to new owners
Issuance of new stock shares
Conversion into an LLC

The correct answer is: Change in company name

A change of ownership for a corporation occurs when there is a change in the company name. This is because a corporation is a legal entity separate from its owners, and the company name is a key identifier of the entity. The other options are not considered a change of ownership because they do not alter the legal structure or identity of the corporation. While a transfer of at least 50% ownership to new owners may result in a change of control within the corporation, the company name and legal entity remain the same. Issuance of new stock shares does not necessarily result in a change of ownership, as existing shareholders may still hold the majority of ownership. Conversion into an LLC is a change in legal structure, but it does not necessarily mean a change of ownership as the same individuals can still hold ownership in the LLC. Thus, B, C, and D are incorrect choices.