A _____________ Entails Establishment of a Firm That Is Jointly

question 14

Multiple Choice

A _____________ entails establishment of a firm that is jointly owned by two or more otherwise independent firms.

• A) licensing agreement
• B) wholly owned subsidiary
• C) franchise
• D) joint venture
• E) merger

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Definitions:

Effective Means

Methods or strategies that achieve desired results or objectives efficiently.

Budget

An estimate of income and expenditure for a set period of time, guiding financial planning and performance evaluation.

Contribution Margin

The revenue remaining after variable costs are subtracted, indicating how much revenue contributes to fixed costs and profit.

Costs Incurred

Expenses that a company has recognized or spent, regardless of when payment is made.