Which of the Following Is an Indication of the Accumulation

question 40

Multiple Choice

Which of the following is an indication of the accumulation of earnings and profits beyond the reasonable needs of the business?

• A)A $200,000 earnings and profits balance
• B)$200,000 accumulated to retire debt
• C)$600,000 accumulated for shareholder loans
• D)$12,000,000 accumulated to expand operating facilities

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Definitions:

Licensing

A business arrangement where one company gives another company permission to manufacture its product for a specified payment.

Brand Name

The name given to a product or service by a company, which is used to identify and distinguish it from competitors' products or services.

Licensing

A business arrangement where one party (the licensor) allows another (the licensee) to use its intellectual property, brand, or technology in exchange for a fee or royalty.

Global Market Entry

Strategies and methods used by companies to start doing business in new international markets.