Strategic Alliances Are

question 10

Multiple Choice

Strategic alliances are:

• A) short-term agreements between two companies to jointly develop new products.
• B) short-term agreements between two companies to jointly market new products that benefit all companies involved in creating the product.
• C) short-term partnerships between two companies.
• D) long-term commitments between two companies to share research and development activities.
• E) long-term agreements between two or more companies to jointly develop products that benefit all companies involved in the alliance.

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's receivables that may not be collectible.

Bad Debt Expense

An expense reported on the income statement, representing the amount of non-collectible accounts receivable during a period.

Direct Write-off Method

An accounting method where bad debts are expensed only when they are deemed uncollectible.

Allowance Account

An account used to record adjustments for potential future losses or defaults on receivables, essentially reducing the value of accounts receivable to a more realistic figure.