A Canadian Developer of Software for Automated Coal Mining Equipment

question 36

Essay

A Canadian developer of software for automated coal mining equipment has been approached by a Russian mining conglomerate with an offer to cooperate on adapting the software to the Russian market.If the Canadian company agreed to work with the Russian company,they would have to reveal the software's source code (the source code is the key to software and is used to protect proprietary technology).
Identify and describe any risk factor(s)that would be key to this business.

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Definitions:

Collection Float

The time period between when a check is deposited and when the funds become available in the recipient's account.

Net Float

Net float is the difference between the amount of checks written by a company and the amount that has been cleared and charged to the company's account, affecting its available balance.

Collection

The process of obtaining payment on outstanding accounts or the grouping of specific items, as in art or stamps.

Disbursements Float

The time difference between when a payment is made by a firm and when the funds are actually withdrawn from the firm's bank account.