SpeakEasy, a U

question 22

Multiple Choice

SpeakEasy, a U.S. software company that specializes in voice-recognition software, wishes to rapidly enter the growing technical translation software market. This market is dominated by firms making highly differentiated products. To enter this market, SpeakEasy would be best served if it considers a(an) :

• A) vertical acquisition of a firm that uses technical translation products.
• B) acquisition of a highly related firm in the technical translation market.
• C) cross-border merger, preferably with an Indian or Chinese company.
• D) strategy of internally developing the technical translation products needed to compete in this market.

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Definitions:

Sales Adjusted

The revision of sales figures to account for returns, allowances for damaged goods, and discounts given.

Cash Basis

An accounting method where transactions are recorded when cash is received or paid, without regard to when the transactions occurred.

Selling and Administrative Expense

Costs incurred by a company from its selling activities and the management of the overall company, excluding production costs.

Cash Basis

A bookkeeping approach that only recognizes earnings and outgoings at the time cash is exchanged.