FedEx Entered into an Alliance with Chronopost Internationale, a Subsidiary

question 130

Multiple Choice

FedEx entered into an alliance with Chronopost Internationale, a subsidiary of the French post office. Under this alliance, FedEx will transport French international shipments in its aircraft, and the French postal service will deliver FedEx packages across Europe. What is this an example of?

• A)contract manufacturing
• B)a trade bypass
• C)licensing
• D)a joint venture

---

Definitions:

Allowance Method

An accounting technique used to estimate the amount of uncollectible accounts receivable and adjust for bad debts.

Uncollectible Accounts

Accounts receivable that a business is unable to collect, often written off as a bad debt expense.

Accounting Equation

A fundamental financial equation representing the relationship between assets, liabilities, and equity (Assets = Liabilities + Equity).

Allowance Method

A method of accounting for bad debts that involves estimating uncollectible accounts at the end of each period.