A ____ Is Created When Two or More Firms Share

question 74

Multiple Choice

A ____ is created when two or more firms share ownership of a new company.

• A)Joint venture
• B)Strategic alliance
• C)Direct investment
• D)Contract

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Definitions:

GAAP

Generally Accepted Accounting Principles, a set of accounting standards and procedures used in the United States to govern financial reporting.

Current Cost

The cost that would be incurred to replace an asset or to purchase an equivalent asset at the current time.

Management Discretion

The degree of flexibility and judgement allowed to managers in making decisions and choices impacting the company's operations and performance.

FIFO

An inventory valuation method where the first items placed into inventory are the first ones sold (First In, First Out).