Asked by Carson Morris on May 14, 2024
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Overseas Shipping Corporation and Port Storage Company transfer their assets to Quality Operations, Inc., which manages the assets and distributes the profits to the beneficiaries. This form of business organization is
A) a business trust.
B) a joint stock company.
C) a joint venture.
D) a syndicate.
Business Trust
A legal arrangement where assets are managed by trustees for the benefit of the trust's beneficiaries, often used in business for tax and estate planning.
Assets
Resources owned or controlled by a business, individual, or entity which have value and can be used to meet debts, commitments, or legacies.
Profits
The financial gain obtained when the revenue from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.
- Describe the characteristics and legal consequences associated with different business formations, including business trusts, joint ventures, and incorporated cooperatives.
- Distinguish among various business entities by examining their approaches to managing assets, distributing profits, and the liabilities of members.
Verified Answer
Learning Objectives
- Describe the characteristics and legal consequences associated with different business formations, including business trusts, joint ventures, and incorporated cooperatives.
- Distinguish among various business entities by examining their approaches to managing assets, distributing profits, and the liabilities of members.
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