The Ford Motor Company Has Entered into an Alliance with Yves

question 7

Multiple Choice

The Ford Motor Company has entered into an alliance with Yves Saint Laurent, a maker of clothing and one of the most successful fashion houses in the world. Yves Saint Laurent is headquartered in France. Ford will use Yves Saint Laurent designs and color traditions in its production of luxury models of the company's Expedition SUV and Lincoln vehicles. The Yves Saint Laurent elements will appear in the interior and body paint color. This alliance would most likely be classified as

• A) a strategic alliance.
• B) a joint venture.
• C) a global direct ownership.
• D) a multinational enterprise.
• E) contract manufacturing.

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Definitions:

Equal Cash Flow

Recurrent inflow or outflow of cash that is the same in amount for each period.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as part of retirement planning.

Sensitivity Analysis

A technique used in financial modeling to determine how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

Residual Value

The estimated value of a fixed asset at the end of its useful life, important for calculating depreciation.