Which of the Following Summarizes the Benefit of the Strategic

question 81

Multiple Choice

Which of the following summarizes the benefit of the strategic alliance between HP and DreamWorks?

• A) HP and DreamWorks each strengthened their separate markets without impinging on each other's markets.
• B) Both HP and DreamWorks were able to enter a new market that they would not have been able to pursue alone.
• C) HP was able to enter a new market, and DreamWorks was able to strengthen its old market.
• D) DreamWorks was able to enter a new market, and HP was able to strengthen its old market.

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Definitions:

Percentage of Sales Method

A forecasting technique used to predict various financial figures, such as expenses or inventory levels, as a fixed percentage of sales.

Allowance for Doubtful Accounts

A contra asset account representing the amount of accounts receivable a company does not expect to collect.

Equity

Equity represents the value that would be returned to a company’s shareholders if all the assets were liquidated and all the debts repaid.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or a business's operating cycle, whichever is longer.