Question 5: Of the following business ideas, which is the most appropriate example of a joint venture? a. Brothers Jackson and Sean have been working independently as auto mechanics for years. Now, they are teaming up to open their own garage, AutoWorks, a full-service garage that also offers automobile customization and detailing. b. Millie has always been a lover of antiques with aspirations of opening an antique store she would run herself. Now that her children are grown, she is going to see her goal of opening Millie’s Boutique through to fruition! c. Over the years, Mario has acquired ownership of nearly 15 independent, family-owned gas stations across the Midwestern United States. Now, Mario is going to create one, uniform gas station brand for all 15 gas stations, and he has plans for acquiring another 30 stations he will market under the same name. d. Eric and Sheila are coming together to rehab 10 houses then flip, or sell, them for a profit. Eric has the capital to invest in the project but no home repair/rehab know-how, whereas Sheila has no capital to invest in the project, but 20 years of experience as a
general contractor. She and a small team she and Eric hire will be the laborers of the project, and Eric will be in the investor. e. Attorneys Bateman, Smith, Rossi, and Berkowicz are opening their own law firm in which all four attorneys will be partners with liability protection. Also called members, the attorneys cannot be held personally liable for debts unless they have signed a personal guarantee. Please consider your response. The correct answer is a. In this case, Sean and Jackson are forming a joint venture relationship, wherein both parties will contribute their money and labor to see their venture, in this case their garage they will both work as mechanics in, through to fruition. End of Activity Financial markets entail or include the stock and bond markets, and they can principally be divided into two types of exchanges, or two types of operations: a primary market, which is enacted through investment banking firms, and the secondary markets, which are the stock and bond exchange markets themselves. There is also the aspect of the secondary market: the so-called over the counter market, which would be NASDAQ. The primary secondary stock exchange would be the New York Stock Exchange. This is in the United States; there are other stock exchanges around the world, and there are some other stock exchanges in the United States that are less significant, or less important, than the New York Stock Exchange, which people generally follow on a day-to-day basis. Besides the stock and bond marketplace, another type of financial market is commodities markets. Commodities would be oil; natural gas, perhaps; steel; and other types of products that are dealt with on more or less a commodity basis. In other words, there is not any differentiation in terms of their value of that commodity, but they are sold in a commodity marketplace more or less based on market driver forces of supply and demand.
- Summer '13
- Financial Markets, Corporation, Stock exchange