One of the Motives That Prompt Firms to Enter into Partnerships

question 242

Multiple Choice

One of the motives that prompt firms to enter into partnerships is:

• A)creating longer distribution channels.
• B)raising barriers to entry.
• C)promoting the use of technology to facilitate customer orientation.
• D)avoiding vertical and horizontal integration.

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Definitions:

Bonds Issued

Debt securities sold by corporations or governments to investors to raise capital, requiring periodic interest payments and repayment of principal at maturity.

Bonds at Discount

Bonds issued below their face value, where the difference between the issue price and the face value represents the interest.

Journal Entry

A record in the accounting journal that represents a single transaction and shows the debits and credits to the various accounts affected by the transaction.

Quoted Price

The existing rate at which an asset or service can be sold or purchased.