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Two Cities Entered into a Contractual Agreement to Operate a Landfill

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Two cities entered into a contractual agreement to operate a landfill. The cities each contributed the necessary assets to operate the landfill in proportion to their populations. First City has the ability to appoint five members of the seven-person governing body of the landfill. The appointees serve for six-year terms, cannot be reappointed, and can be removed only for cause. First City has no obligation to contribute to the landfill if the landfill revenues are insufficient to cover current operating costs. The landfill would be considered a(n)

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Definitions:

Selling Shares

The act of disposing of ownership units in a company, usually in the form of stocks, to another party.

Corporation

A legal entity that is separate and distinct from its owners, which can own property, incur debt, sue and be sued.

Provincial Agency

A government organization or entity that operates at a provincial level, responsible for administering specific services or regulatory functions.

Issuance and Trading

Refers to the process of issuing new securities, like stocks or bonds, and their subsequent buying and selling on markets.

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