Riytiz Corp

question 40

Multiple Choice

Riytiz Corp. and Tenkriz Corp. are two industrial developers. They plan to combine their funds, finances, risks, and expertise to build the Opobip Bridge. This bridge is said to connect two states that are not connected by a highway. In this scenario, the venture between Riytiz Corp. and Tenkriz Corp. would be called a _____.

• A) strategic alliance
• B) wholly owned affiliate
• C) conglomerate
• D) franchise

---

Definitions:

Internal Rate Of Return

A metric used in capital budgeting to estimate the profitability of potential investments.

Payback Method

A capital budgeting method that calculates the time needed to recoup the initial investment from the cash inflows.

Time Value Of Money

The idea that money in hand now is more valuable than the same amount in the future because of its ability to generate earnings.

Liquidity Bias

A preference or bias for investments that can be quickly converted into cash without significant loss in value.