Stellar Products Inc

question 49

Multiple Choice

Stellar Products Inc.is a U.S.-based consumer electronics company.It owns smaller firms in Japan and Taiwan where most of its cell phone technology is developed and manufactured before being released worldwide.Which of the following alternatives to integration does this best illustrate?

• A) venture capitalism
• B) franchising
• C) joint venture
• D) parent-subsidiary relationship

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Definitions:

Citizen

A legally recognized subject or national of a state or commonwealth, either native or naturalized.

Double Taxation

The levying of tax by two or more jurisdictions on the same declared income (in the case of income taxes), asset (in the case of capital taxes), or financial transaction (in the case of sales taxes).

S Corporation

A special designation that allows corporations to pass income, losses, deductions, and credits through to their shareholders for federal tax purposes.

C Corporation

A legal structure for a corporation in which the owners, or shareholders, are taxed separately from the entity.