A Popular Ice Cream Chain Enters a New Market in Another

question 64

Multiple Choice

A popular ice cream chain enters a new market in another country by allowing local retailers to market its products, including the use of its brand name and format.This form of entry strategy into a new market is known as:

• A)strategic alliance.
• B)direct investment.
• C)joint venture.
• D)exporting.
• E)franchising.

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Definitions:

Fair Value Adjustment

A financial reporting process that adjusts assets or liabilities to their current market value, rather than historical cost.

Valuation Account

A type of accounting balance that is used to adjust the value of a related account, often serving to decrease the value of the primary account.

Adjustment Account

A specific account used to adjust the value of related accounts to reflect accurate financial information.

Offset Account

A bank account that reduces the amount of interest payable on a loan by the amount held in the account.