Licensing Is When a Company ____

question 98

Multiple Choice

Licensing is when a company ____.

• A)allows another company to pay it a fee to train its employees
• B)allows a foreign company to pay it a fee to make or distribute the first company's product or service
• C)pays a competitor a fee to avoid a company's territory
• D)develops a strategic plan for another organization
• E)barters goods for goods in lieu of a monetary payment

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Definitions:

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating the company's financial performance over a period.

Consolidation Entry TI

A specific type of journal entry made during the consolidation process to integrate the financial activities of a parent company and its subsidiaries.

Consolidation Entry G

An accounting entry used in consolidation to eliminate the effects of intercompany transactions among entities within a consolidated group for external reporting.

Wholly Owned Subsidiary

A company whose entire share capital is held by another company, making it a completely controlled entity of the parent company.