Jane and Joan decide to open a plumbing business. Both contribute money to the business, but
because Jane has expertise in plumbing, she makes all the management decisions. Joan will not
participate in any of the day-to-day operations.
Jane and Joan will split net income equally.
This enterprise is:
A) A partnership.
B) Not a partnership because they do not share management responsibilities.
C) Not a partnership because they do not co-own the business.
D) Not a partnership because they are not carrying on a trade or business.
E) Not a partnership because there is no association of two or more people.
A
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In discussing the expansion effort to India, the CEO reminded shareholders of Black and Decker's move to partner with the Indian auto retailer Bajaj. The CEO was most likely attempting to justify which of the following?
A) a joint venture that would position Sterling for long-term sales in India B) a marketing effort targeted to American citizens living in India C) a price drop to ward off competition from an emerging Indian auto retailer D) a new manufacturing protocol based on an efficient Indian production method
What modification to the Abernathy and Utterback model resulted after it was noticed that incumbent firms were often the very firms that invented the radical new technologies that they were unable to adopt?
a. model of competence-destroying and competence-enhancing innovation b. model of value networks and disruptive-innovation c. model of reverse product cycle theory d. model of architectural innovation