What is an equity alliance?

A) a collaborative arrangement in which at least one collaborating company takes an ownership position in the other
B) a collaboration in which each contributor receives an equitable return based on relative contribution
C) a collaboration in which partners agree to share technology with each other
D) a wholly owned acquisition to prevent appropriation of intellectual property

A

Business

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Abraham becomes an equal partner in the Kit, Kat, and Kidd Partnership in 2014. In 2013, he filed his personal tax return on the calendar tax year basis. The partnership reports income and expenses on the fiscal tax year basis. How should Abraham report partnership income or loss distributed to him?

A. Abraham may choose a fiscal tax year and later obtain IRS approval if he wishes to change to a calendar tax year for reporting income and expenses. B. Abraham may choose either a calendar tax year or fiscal tax year to report income and expenses. C. Abraham may choose a fiscal year to report income and expenses. D. Abraham must report income and expenses on the calendar year basis.

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