Japanese Telecom NTT DoCoMo Inc

question 73

Multiple Choice

Japanese telecom NTT DoCoMo Inc.and Chinese Internet search operator Baidu Inc.established an alliance to distribute games and other mobile-phone content.Baidu will own 80 percent of this collaboration with DoCoMo holding the remaining 20 percent.This collaborative arrangement is an example of a(n) :

• A) joint venture.
• B) network strategy.
• C) equity strategic alliance.
• D) nonequity strategic alliance.

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Definitions:

Invested

The act of allocating resources, typically money, into something with the expectation of generating income or profit.

Net Present Value Method

A method used in capital budgeting to evaluate the profitability of an investment or project by calculating the present value of its expected cash flows minus the initial investment.

Cost Savings

The reduction in expenses achieved by improving efficiency, productivity, or reducing waste, often without compromising quality or performance.

Acquisition Cost

The total cost that a company recognizes on its financial statements for acquiring an asset or taking over another business.