Derrido Is an American Firm That Has Produced Several Successful

question 115

Multiple Choice

Derrido is an American firm that has produced several successful animated TV series in the United States.It is considering contracting with one or more international companies to market its products overseas. One of Derrido's sales executives suggests that Derrido's particular type of business enables a contractual relationship to be an especially suitable way for the company to market its products internationally.Which of the following,if true,would strengthen this position?

• A)Contractual relationships allow an originating firm to make the most use of local talent.
• B)Contractual relationships cannot capture unpredictable future contingencies.
• C)Contractual relationships are often cross-culturally contentious.
• D)Derrido would not be undertaking large-scale production or shipping operations.
• E)Derrido is a large company with ample staff and resources at its disposal.

---

Definitions:

Balance Sheet Columns

Sections within the balance sheet that categorize assets, liabilities, and equity accounts to display a company's financial position at a specific point in time.

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been deducted from total revenue.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders, which is reinvested in the business.

Annual Revenues

The total amount of money received by a company for goods sold or services provided during a fiscal year.