Soccer to the Masses Is Interested in Global Expansion but Does

question 82

Multiple Choice

Soccer to the Masses is interested in global expansion but does not want to make a large financial commitment. Therefore, it decides to allow a Japanese company to manufacture and distribute products under the Soccer to the Masses name. This is a(n) ____ agreement.

• A) exporting
• B) strategic alliance
• C) licensing
• D) countertrade
• E) bill of lading

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Definitions:

Contingent Liability

A potential financial obligation that may occur or become payable in the future, depending on the outcome of a specific event.

Reasonably Possible

A term used in accounting and law to describe a situation or outcome that, while not certain, is more than a remote possibility.

Estimable

Capable of being estimated or appraised, often used in finance and accounting to describe assets or liabilities that can be accurately assessed.

Installment Note

A debt instrument that requires regular payments, or installments, of principal and interest over a specified period.