_____ Are New Companies That Are Founded with an Active

question 53

Multiple Choice

_____ are new companies that are founded with an active global strategy and have sales, employees, and financing in different countries.

• A) Joint ventures
• B) Strategic alliances
• C) Global new ventures
• D) Global new acquisitions

Recognize the importance of post-audit in capital budgeting and how it can provide feedback on the investment's performance.

Understand the effect of tax implications on cash flows from capital investments.

Understand the concepts of payback method and time value of money in capital budgeting decisions.

Identify the role of preference decisions in the context of capital budgeting.

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Definitions:

Public Company Accounting Oversight Board (PCAOB)

A nonprofit corporation established by Congress to oversee the audits of public companies in order to protect the interests of investors.

Investment Company Act of 1940

A law that regulates investment companies and the activities they engage in, including mutual funds, to protect the interests of investors.

Mutual Funds

Investment programs funded by shareholders that trade in diversified holdings and are professionally managed.