The three main advantages of holding companies are (1) control with fractional ownership, (2) taxation benefits, and (3) isolation of operating risks.
Answer the following statement true (T) or false (F)
False
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Strategy decisions do not lead to a specific price-setting rule; rather, they give general guidelines for whether a price should be low or high
Indicate whether the statement is true or false
When the U.S. military contracts out security details in war zones, it is engaged in privatization.
Answer the following statement true (T) or false (F)
The marketing manager at Little Red Architects, a firm that specializes in the design of school buildings, discovered a glitch in the software that the firm uses. As a result, some of its most recent projects will come in over budget. In the context of SWOT analysis, a discussion of this would be included under ________.
A. strategies B. opportunities C. threats D. weaknesses E. strengths
Frescoand Garcia form a partnership—HVAC Pros. Garcia's capital contribution is $10,000, and Fresco'sis $15,000. The partnership agreement provides that profits are to be shared, with 40 percent for Garcia and 60 percent for Fresco. Later, Garcia
makes a $10,000 loan to the partnership when it needs working capital. When the partnership is dissolved, its assets are $50,000, and its debts are $8,000. How should the assets be distributed?