________ Are Those That Make It Desirable for a Firm

question 66

Multiple Choice

________ are those that make it desirable for a firm to produce a good or service itself rather than contracting with another firm to produce it.

• A) Ownership advantages
• B) National competitive advantages
• C) Internalization advantages
• D) Resource availabilities

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Definitions:

Compensating Balance

A minimum account balance that a borrower agrees to maintain in a bank account as a condition for receiving a loan, often to compensate the bank for the loan or to secure better loan terms.

Footnotes

Additional information provided at the end of financial statements to give more detail or provide explanations about items in the financial statements.

Credit Sale

A type of transaction in which goods or services are provided to a customer with the understanding that payment will be made at a later date.

Collectibility

The likelihood that a receivable will be collected from a debtor, typically considered in revenue recognition and accounting for bad debts.