By Allowing a Company to Purchase Another Existing Firm in the Host

question 59

Multiple Choice

By allowing a company to purchase another existing firm in the host country, a(n) ______ permits a largely domestic business to gain an international presence very quickly.

• A) acquisition
• B) foreign licensing agreement
• C) joint venture
• D) countertrade

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Definitions:

Vest

To bestow a right, immediate or future, for the ownership of (an asset, typically a stock or option) to a worker under a plan, which may be subject to conditions.

Current Liability

Financial obligations or debts that are due to be paid within a year or within the normal operating cycle of a business.

GAAP

Stands for Generally Accepted Accounting Principles; the standard framework of guidelines for financial accounting used in any given jurisdiction, including the standards, conventions, and rules accountants follow in recording and summarizing transactions, and in the preparation of financial statements.

Compensated Absences

Employee benefits representing paid time off, such as vacation, sickness, or personal leave, accrued by employees.