Describe a company that has some elements of all three types of companies. It is part service company, part manufacturer, and part merchandiser
What will be an ideal response?
Many restaurants fall into this category because most restaurants are a service company since they serve hungry customers. A restaurant is also considered a manufacturer if the restaurant converts raw ingredients into finished meals. A restaurant is also considered a merchandise company if the restaurant sells ready-to-serve bottles of beer and wine to consumers and groups in the marketplace. Outback Steakhouse is an example of a restaurant that is categorized as a service company, a merchandise company, and a manufacturing company.
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The owners share ownership in commingled goods in proportion to the amount of goods contributed by each owner
Indicate whether the statement is true or false
In complete voluntary liquidations, the sum of the firm's parts is worth more than the whole, for all of the following reasons EXCEPT:
a. the assets (or divisions) may be worth more in the hands of more competent managers. b. liquidated assets always sell at a premium to their fair value. c. the special tax treatment afforded liquidations provides a source of value over and above the firm's value as a going concern. d. any diseconomies associated with excessive diversification can be eliminated by piecemeal sale through liquidation.