Which of the Following Is the Typical Order of Sourcing

question 17

Multiple Choice

Which of the following is the typical order of sourcing capital abroad?

• A) an international bond issue, then cross-listing the outstanding issues on other exchanges, then an international bond issue in the target market
• B) an international bond issue in the target market, then cross-listing the outstanding issues on other exchanges, then an international bond issue
• C) an international bond issue in less prestigious markets, then an international bond issue in the target market, and ultimately a eurobond issue
• D) cross-listing the outstanding issues on other exchanges, then an international bond issue, then an international bond issue in the target market

Differentiate between various types of business combinations and their legal and financial implications.

Understand the acquisition method of accounting for business combinations.

Calculate the total consolidated net assets after a business combination.

Identify and compute fair values adjustments in business combinations.

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Definitions:

Cooperative Marketing Systems

Marketing efforts by a group of businesses working together to promote their collective interests and improve sales.

Contractual Systems

The collection of legal agreements used in franchising, distribution, and other business arrangements that define the terms of relationships between parties.

Franchising

Franchising is a method of doing business wherein a franchisor grants the rights to an individual or entity (franchisee) to operate a business model using the franchisor’s brand and system.

Contractual System

A system based on legal agreements between parties that govern their business relationships and transactions.