A Start-Up and an Established Company Have Entered into a Business

question 82

Multiple Choice

A start-up and an established company have entered into a business agreement. In this arrangement, the established company will provide capital and other resources and the start-up will contribute its technological expertise. This method of acquiring new technology is known as

• A) offshoring.
• B) research partnership.
• C) benchmarking.
• D) technology trading.
• E) internal development.

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Definitions:

Cash Dividends

Distributions of a company's earnings to shareholders in the form of cash.

Dividends Payable

A liability recorded when a company declares dividends but has not yet paid them to shareholders.

Cash Payments

Outflows of cash made by a business, including expenses, creditor payments, and other liabilities, during a specific period.

Statement of Cash Flows

It's a financial document summarizing the total cash entering a company from operational earnings and investment revenues, as well as the cash spent on business-related activities and investment outlays during a specific period.