Software Entrepreneurial Venture (Scenario)

question 125

Multiple Choice

Software Entrepreneurial Venture (Scenario)
Talal and Jibran have formed an entrepreneurial venture to develop software for banks and other financial institutions. Their company is growing, but in looking for opportunities in the future, they decide to explore international operations.
-The international operations in their firm continue to grow. Talal and Jibran have come to see that decentralized management using foreign nationals to run operations in the host countries works well. Their firm has developed into a(n) __________organization.

• A) franchise
• B) borderless
• C) transnational
• D) multidomestic

---

Definitions:

Time Period Assumption

an accounting principle that divides an enterprise's life into small periods of time for reporting and analysis purposes.

Economic Life

The expected period over which an asset remains useful to the owner or until it can generate economic benefits.

Artificial Time Periods

Divisions of time, not naturally occurring, created for the purpose of financial reporting, budgeting, or project scheduling.

Economic Entity Assumption

An accounting principle that treats a company as a separate entity from its owners or shareholders for financial reporting purposes.