Quintal Communications Contributes $100 Million and Two Patents to a Joint

question 10

True/False

Quintal Communications contributes $100 million and two patents to a joint venture. Systemware, a software giant, in turn contributes $60 million, one patent, and a facility for operations. Each company knows what technical support, resources, and personnel are required of each business. This arrangement is most likely a cooperative alliance.

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Definitions:

Dividend Payout Ratio

A financial ratio that shows the percentage of a company's earnings distributed to shareholders as dividends.

Market Price

The amount of money a buyer is willing to pay for a good or service in a competitive marketplace.

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Common Stock

A type of equity ownership in a corporation, representing a claim on part of the company's profits and assets.