Question

Everal small vineyard owners in the Napa Valley region of California banded together to market their grapes and wine in an attempt to get better prices. Over the organization to include other services such as buying and selling farm supplies and equipment and providing financial and technical services. The arrangement established by these vineyard owners is an example of a Multiple Choice closed corporation.

1. joint venture
2. imited agricultural partnership
3. farm cooperative
4. closed corporation.

Answer 1

Option 3 Farm cooperative also known as agricultural cooperative, in which farmers pool their farm's output to generate greater value for their crops. So this is the example of Farm cooperative and objective of this farm cooperative forming is to lower the middle man and the bargaining power of the purchaser which they misused and which damaged the farmers financial position.

Joint ventures is the forming of new product by the collaboration of different entities to generate higher demand of the product and maximise the shareholder's wealth.

Limited liability company requires registration of the partnership under rules and regulation of the country to limit the liability associated with the company.

Closed corporations are separate entities and have separate recognition and is form for the wealth maximization of the shareholders. Furthermore is also listed for the purpose of wealth maximization not for increasing the prices of the grapes or crops in the market.