In a Cross-Border Alliance, the Local Partner Is Often a Useful

question 43

Multiple Choice

In a cross-border alliance, the local partner is often a useful source of information about:

• A) sources of capital.
• B) the strengths of the foreign firm's technology.
• C) market synergies.
• D) long-term planning.

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Definitions:

EOQ Model

Economic Order Quantity Model; an inventory management formula that determines the optimal order quantity to minimize total inventory costs.

Collection Policy

The guidelines and procedures that a company follows to collect accounts receivables from its customers, including the timeline and actions for overdue payments.

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers, indicating the efficiency of a company's credit and collection policies.

Net Float

The difference between checks written against and deposited in an account, not yet cleared by the financial institution.