________ Is an Arrangement by Which an Organization in Another

question 57

Multiple Choice

________ is an arrangement by which an organization in another country buys the rights to manufacture a company's product in its own country for a negotiated fee.

• A)Franchising
• B)International licensing
• C)Entering a joint venture
• D)Exporting
• E)Patenting

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Definitions:

Current Ratio

A measure of a company’s capability to settle short-term debts using its current assets.

Acid-Test Ratio

A stringent indicator of a company's short-term liquidity, calculated by dividing liquid assets by current liabilities, excluding inventory from assets.

Financial Stability

The condition of having strong financial health, characterized by a solid balance sheet, manageable debt, and the capability to meet short and long-term obligations.

Operating Efficiency

A measure of how well a company utilizes its resources to generate profit without unnecessary waste.