Compare the Actions of the Following Companies to Determine Which

question 134

Multiple Choice

Compare the actions of the following companies to determine which one represents a direct ownership strategy.

• A)A U.S. clothing firm, Modern Threads, builds and operates an assembly plant in Vietnam.
• B)A U.S. pharmaceutical company partners with a French cosmetic company to create a new entity, selling anti-aging products.
• C)High Tea allows would-be entrepreneurs to use its name and marketing and operational support in exchange for a fee.
• D)A U.S-based manufacturer of pipe fittings sells its products to companies located in China.
• E)Taste-T Ice Cream has set up a legal agreement with Big Burgers to sell its ice cream in all Big Burger restaurants.

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Definitions:

Disaffirm

The legal act of renouncing or voiding a contract or agreement, particularly as it relates to individuals who were not competent to enter into the contract initially, like minors.

Unconscionable Contracts

Agreements between parties that are so unfair or one-sided that they shock the conscience, often rendering them unenforceable in court.

Transfer Of Assets

The act of moving ownership of assets from one party to another, which could involve property, financial instruments, or other resources.

In Pari Delicto

In equal fault. A contract relationship when both parties to an illegal agreement are equally wrong, in the knowledge of the operation and effect of their contract.