Bubbles Beverages Company Entered into a Sponsorship Agreement with Play

question 52

Multiple Choice

Bubbles Beverages Company entered into a sponsorship agreement with Play Big Stadium.According to this agreement, the company will sponsor the stadium to maintain its courts regularly.In return, the stadium should allow only company products to be sold inside its premises.Identify the type of business relation between Bubbles Beverages Company and Play Big Stadium.

• A)Limited partnership
• B)Investment alliance
• C)Limited liability partnership
• D)Strategic alliance

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Definitions:

Bonds Payable

Long-term liabilities represented by promissory notes issued by a company to borrow funds, repayable at a specified future date along with interest.

Unamortized Discount

The portion of a bond's issue price that is below its face value and has not yet been expensed over the life of the bond.

Straight-Line Method

A method of calculating depreciation or amortization by evenly spreading the cost of an asset over its useful life.

Consolidated Statement

A financial document that presents the combined financial position and results of operations for a parent company and its subsidiaries, treating them as a single economic entity.