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  • Exercise Answers - Joint Venture

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    John Philip L Concepcion
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    Apple Inc. and Samsung Inc. formed a company called Sample Inc. to manufacture parts for their manufacturing processes. They have voting rights in Sample Inc. and unanimous consent is required for corporate acts. Sample Inc. holds title to its own assets and liabilities. Based only on its legal form, the interest of Apple and Samsung in Sample Inc. is classified as a joint arrangement accounted for as an investment in a joint venture under the equity method because Sample Inc. holds title to the assets of the venture.

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    Apple Inc. and Samsung Inc. formed a company called Sample Inc. to manufacture parts for their manufacturing processes. They have voting rights in Sample Inc. and unanimous consent is required for corporate acts. Sample Inc. holds title to its own assets and liabilities. Based only on its legal form, the interest of Apple and Samsung in Sample Inc. is classified as a joint arrangement accounted for as an investment in a joint venture under the equity method because Sample Inc. holds title to the assets of the venture.

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    203 views1 page

    Exercise Answers - Joint Venture

    Uploaded by

    John Philip L Concepcion
    Apple Inc. and Samsung Inc. formed a company called Sample Inc. to manufacture parts for their manufacturing processes. They have voting rights in Sample Inc. and unanimous consent is required for corporate acts. Sample Inc. holds title to its own assets and liabilities. Based only on its legal form, the interest of Apple and Samsung in Sample Inc. is classified as a joint arrangement accounted for as an investment in a joint venture under the equity method because Sample Inc. holds title to the assets of the venture.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 1

    Apple Inc. and Samsung Inc. Incorporated an entity named Sample Inc.

    where in the parties will


    have voting rights in the decision affecting the relevant activities of the arrangement. The
    contract provides that unanimous consent by the parties is necessary for the validity of
    Sample’s corporate act. The purpose of the arrangement is for Sample Inc. to manufacture
    parts for the parties own manufacturing processes. The assets and liabilities held in Sample Inc.
    are in are name of Sample Inc. what is the classification of the interest of Apple Inc. and
    Samsung Inc. in Sample Inc. based on Sample Inc.’s Legal form only.
    It shall be classified as Joint Arrangement accounted for as Investment in Joint Venture under
    Equity Method because Sample Inc. holds title over the assets of the venture.
    Which of the following is not a characteristics of joint arrangement classified as joint venture?
    With separate vehicle, the joint arrangement is always classified as joint venture

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