If a Business Wants to Have a Bigger Presence in International

question 117

Multiple Choice

If a business wants to have a bigger presence in international markets, which of the following production options should it consider?

• A) a franchise agreement
• B) a joint venture
• C) licensing agreement
• D) a joint venture or a licensing agreement
• E) a franchise agreement or a joint venture or a licensing agreement

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Definitions:

Net Income

A company's overall earnings following the deduction of all expenses and taxes from its gross income.

Average Collection Period

The average number of days it takes for a company to collect receivables from its customers, indicating the efficiency of its credit policies.

Discount Period

The time frame in which a buyer can pay less than the full amount due on an invoice if payment is made promptly, incentivizing early payment.

Credit Term

The agreement between a buyer and a seller that defines the amount of time a buyer has to pay for goods.