Which of the Following Is an Advantage of Selling Through an Intermediary

question 20

Multiple Choice

Which of the following is an advantage of selling through an intermediary or partner?

• A) The partner gets the upside potential.
• B) Cash flow is more predictable if the entrepreneur has a licensing agreement.
• C) The  entrepreneur is a ble to manage user data and experience.
• D) The entrepreneur has control over branding, pricing, and relationship with customers.
• E) All of these are correct.

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Definitions:

Goodwill

Goodwill is an intangible asset that arises when a business is purchased for more than the fair value of its net assets, representing elements of value such as brand reputation, customer relations, and intellectual property.

Fair Value

An estimate of the price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.

Consolidated Net Income

The total earnings of a corporation and its subsidiaries after tax, representing the total profit attributable to the parent company and its shareholders.

Acquisition

The process by which one company takes over another company, either by purchasing it or merging with it.