Rinsen Corp

question 94

Multiple Choice

Rinsen Corp., a U.S.-based firm, is allowing Blink Traders, a firm based in Ireland, to conduct Rinsen's business in its country. Rinsen Corp. is going to provide training, equipment, and advertising assistance to Blink Traders for initial fee plus royalties. This form of global business is an example of a _____.

• A) wholly owned affiliate
• B) conglomerate
• C) franchise
• D) joint venture

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Definitions:

GAAP

Generally Accepted Accounting Principles, which are a set of accounting standards and practices used to prepare financial statements.

Financial Instruments

Contracts that give rise to both a financial asset of one entity and a financial liability or equity instrument of another entity.

Discounted Note

A promissory note that is sold or issued for less than its face value and upon maturity pays out its full face value, effectively generating interest for the holder.