Derrido Is an American Firm That Has Produced Several Successful

question 246

Multiple Choice

Derrido is an American firm that has produced several successful animated TV series in the United States. It is considering contracting with one or more international companies as a way to market its products overseas. One of Derrido's sales executives suggests that Derrido's particular type of business enables a contractual relationship to be an especially suitable way for the company to market its products internationally. Which of the following, if true, would strengthen this position?

• A) Contractual relationships allow an originating firm to make the most use of local talent.
• B) Contractual relationships cannot capture unpredictable future contingencies.
• C) Contractual relationships are often cross-culturally contentious.
• D) Derrido would not be undertaking large-scale production or shipping operations.
• E) Derrido is a large company with ample staff and resources at its disposal.

---

Definitions:

Credit Sales

Transactions where goods or services are provided to a customer with the agreement that payment will be made at a later date.

Uncollectible

Refers to accounts receivable that are considered to be uncollectable and are thus written off as a bad debt expense.

Cash Receipts

The collection of money (currency, checks, wire transfers) by a business from its customers or other parties.

Inventory Purchases

The total cost associated with buying goods and materials kept in stock for the purpose of resale or production in a given period.