S and P Each Owns 50 Shares of the Outstanding

question 20

Multiple Choice

S and P each owns 50 shares of the outstanding stock of G Corporation which specializes in framing pictures.G owns all 100 shares of the outstanding stock of W Corporation.S and P caused G to form W many years ago to manufacture frames.This year S and P have decided to divide the corporate assets and part ways.To this end, G distributed all of the stock in W Corporation to S for all of her stock in G.This type of corporate division is referred to as

• A)A liquidation
• B)A spin-off
• C)A split-off
• D)None of the above

Identify the roles and functions of manufacturers' agents and selling agents.

Know how internet-based intermediaries function to connect buyers and sellers.

Describe the characteristics of manufacturers' branches and sales offices as wholesaling activities.

Understand the utility of brokers in facilitating transactions between buyers and sellers without taking title to goods.

---

Definitions:

Bona Fide Purchaser

An individual who purchases an item in good faith, without knowledge of any existing claims or defects on the property.

Security Interest

A legal claim or lien on collateral that secures the fulfillment of an obligation, often used in lending to ensure repayment.

Manufacturer

A company or individual that produces finished goods from raw materials in large quantities using tools, machinery, and labor.

Restaurant

A business establishment where meals or refreshments may be purchased by consumers.