An Arrangement Between Two or More Firms That Establishes an Exchange

question 47

Multiple Choice

An arrangement between two or more firms that establishes an exchange relationship but has no joint ownership involved is called a:

• A) network
• B) trade association
• C) consortia
• D) joint venture
• E) strategic alliance

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Definitions:

Operating Activities

The section of a company's cash flow statement that reveals the cash generated or used in the company’s primary business operations.

Interest Expense

The expense an entity faces for using borrowed capital over a specific time frame.

Inventory Turnover

A financial ratio that measures how often a company's inventory is sold and replaced over a specific period.

Net Profit Margin

A financial metric that shows the percentage of revenue that remains as profit after all expenses, interest, and taxes have been deducted.