If a Company in the United States Allows a Company

question 62

Multiple Choice

If a company in the United States allows a company in England to use its brand name for a fee,the company is said to have entered into a(n) ________ agreement.

• A)license
• B)direct investing
• C)venture
• D)export
• E)import

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Definitions:

Indirect Method

A cash flow statement preparation approach that adjusts net income for changes in non-cash accounts to calculate operating cash flow.

Operating Activities

Actions and transactions related to the core business operations, such as sales and the production of goods or services.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from the total revenue.

Income Taxes Payable

Income Taxes Payable are the taxes that a company owes to the government, which have been incurred but not yet paid, appearing as a current liability on the balance sheet.