Athletic Pursuits specializes in sporting equipment. Recently, it has decided to add to its business units by opening a steakhouse near a convention center. This strategy is an example of
A. concentric diversification.
B. concentration.
C. vertical integration.
D. differentiation.
E. conglomerate diversification.
Answer: E
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A control that can ensure that receiving clerks are not influenced by quantity information while actually counting incoming goods is to:
a. send a "blind" copy of the purchase order to receiving b. establish a "tickler" file for completed purchase orders c. send copies of a receiving report to accounts payable d. establishing "blanket orders" in purchasing
If a company discounts a note at a bank, but still is contingently liable for the maturity value, then the note was discounted with ____________________
Fill in the blank(s) with correct word
In CASE 19.2 Holmes v. Lerner (1999), Lerner (a wealthy entrepreneur) talked to Holmes about setting up a cosmetics business called Urban Decay. Holmes received assurances from Lerner about finances and setting up the business. Later Lerner negotiated a separate deal for Urban Decay without including Holmes, and drafted articles of incorporation which gave Holmes only a one percent interest in
Urban Decay. Holmes sued, insisting that even though they had no written agreement, she should have been a full and equal partner. How did the court rule and why?? a. The court held for Lerner as a full and equal partner, because the oral and written expressions and discussion of profits was a prerequisite to form a partnership. b. The court held for Lerner, there was insufficient evidence of intentions to form a partnership. c. The court held for Holmes as a full and equal partner, because the oral and written expressions and discussion of profits was a prerequisite to form a partnership. d. The court held for Holmes, because under state law, she automatically became a limited partner.
Answer the following statement(s) true (T) or false (F)
1. If specified in the articles of incorporation, shares of stock with no voting rights may be issued. 2. Preferred shareholders may be granted a specific preference over common shareholders with regard to the assets of the corporation upon its dissolution. 3. The rights and preferences of an issued class of stock may be amended by the unanimous consent of the board of directors. 4. The trend in modern corporate law is to require a par value of $1.00 per share or more on each share of authorized stock. 5. A bondholder is often considered to be more of a creditor than an owner.