For a Fee, Green Health Supplements, Inc

question 25

Multiple Choice

 For a fee, Green Health Supplements, Inc. (GHS) allowed another company in Britain to use its formula for a men's tonic. In this case, GHS is using which of the following market entry strategies?

• A) Exporting
• B) Licensing and franchising
• C) Joint venture
• D) Wholly owned subsidiaries

---

Definitions:

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is received or paid, respectively.

Recorded When Incurred

An accounting principle that stipulates expenses should be recognized in the financial statements in the period they are incurred, regardless of when the cash payments are made.

Adjusting Entries

Journal entries made at the end of an accounting period to update account balances before financial statements are prepared.

Account Balances

The total amount of money in a financial account, calculated by adding all credits and subtracting all debits.