I-Jack Inc and Sys/Com Ltd Are Two Large Corporations Carrying

question 74

Multiple Choice

I-Jack Inc and Sys/Com Ltd are two large corporations carrying on telecommunications businesses.They want to work together to set up a new business that would develop and sell telephones specifically designed to take advantage of the new Internet services each is offering.Their idea is that the new telephones could be sold with their telecommunications services as a package.Sys/Com will be responsible for the management of the business.This joint venture could be set up as

• A)a relationship in which the parties' respective rights and obligations are set out completely in a contract between I-Jack and Sys/Com but only if that contract is made in writing and sealed by the parties.
• B)a partnership,in which each of I-Jack and Sys/Com are partners,and the parties' respective rights and obligations are set out in a partnership agreement.
• C)a corporation,in which I-Jack owns all the shares and Sys/Com works as a subcontractor where the terms of the subcontract are negotiated from time to time and I-Jack has unilateral rights of termination.
• D)a relationship in which the parties' respective rights and obligations are set out completely in a contract between I-Jack and Sys/Com,where Sys/Com is an agent with authority to bind I-Jack for obligations incurred to carry out the joint venture business.
• E)an agreement where Sys/Com is the agent for I-Jack,and I-Jack has the right to terminate the agency at any time,and to distribute the profits made by the agency as I-Jack sees fit in its sole discretion.

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Definitions:

Actions Taken

The measures or steps implemented in response to a situation or problem.

Responsibility

A tenet of ethics in which you accept the consequences of your decisions and actions.

Sarbanes-Oxley Act

The Sarbanes-Oxley Act (SOX) is a law passed by U.S. Congress in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to securities laws, including those regarding financial statements.

Financial Controls

Procedures, policies, and means by which an organization monitors and manages its financial resources and operations.