A Car Manufacturer and a Multinational Computer Technology Corporation Intend

question 3

Multiple Choice

A car manufacturer and a multinational computer technology corporation intend to combine their strengths to develop intelligent sound systems for cars.Assuming that both companies will have a moderate to high level of interaction,what would be the most suitable form of alliance to adopt?

• A) The firms should develop an R&D consortium, combining teams from both companies.
• B) The firms should create an equity joint venture, combining assets from both companies.
• C) The firms should create a licensing agreement to exploit the new application.
• D) The firms should develop production facilities to be shared between the partners.

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Definitions:

December 31 Inventory

The value of all unsold inventory held by a company on the last day of the financial year, typically December 31st.

Long-term Liability Balances

Amounts owed by a business that are not due for payment within the next year, such as bonds payable, long-term loans, and lease obligations.

Budgeted Balance Sheet

A financial statement projecting the future financial position of a company, showing expected assets, liabilities, and equity at a specific time.

Cash Budget

A budget projecting cash receipts and disbursements across a definite time frame, commonly employed to oversee liquidity and guarantee fiscal steadiness.