Which of the Following Is a Benefit of Joint Ownership

question 59

Multiple Choice

Which of the following is a benefit of joint ownership?

• A)The companies merge their complementary strengths to develop a global marketing opportunity.
• B)Joint ownership is the simplest way to enter a foreign market.
• C)The risks involved are lesser as compared to those in exporting.
• D)The partners typically agree over investment, marketing, and other policies.
• E)Joint ownership involves lesser change in the company's organization and investments as compared to other forms of joint venturing.

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Definitions:

Posting Error

A mistake made during the process of entering or recording financial transactions in the accounting records.

Written Off

The accounting action of declaring that an asset is no longer useful and its value has become zero, often leading to its removal from the balance sheet.

Allowance Account

A contra-asset account used to create an allowance for doubtful accounts, representing receivables that may not be collected.

Accounts Receivable

Amounts owed to a company by customers for goods or services provided on credit, which are expected to be collected in cash in the future.