NaviCal Inc

question 51

Multiple Choice

NaviCal Inc., a personal navigation system company, has contracted its manufacturing to a firm in Malaysia for five years. NaviCal had high financial growth, and it wants to purchase the manufacturing facility. This market entry method is called ________.

• A) franchising
• B) strategic alliance
• C) joint venture
• D) direct foreign investment
• E) licensing

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Definitions:

Cash Budget

A financial plan that estimates the cash inflows and outflows over a specific period, helping manage cash balance and ensure solvency.

Capital Expenditures

Expenditures that increase the company’s investment in productive facilities.

Cash Receipts

The collection of cash, typically from customers as revenue or from other sources, recorded by a business.

Credit Sales

Sales made on credit, where the payment is received after the goods or services are delivered.