In a Licensing Agreement, the Multinational Corporation Will Very Likely

question 41

Multiple Choice

In a licensing agreement, the multinational corporation will very likely

• A)be able to compete with the local domestic manufacturers.
• B)experience import restrictions imposed by the foreign government.
• C)allow a foreign firm to use its technology in exchange for a fee.
• D)None of these options are true.

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Definitions:

Indirect Method

A way of calculating cash flows from operating activities in the cash flow statement by starting with net income and adjusting for changes in balance sheet accounts.

Depreciation Expenses

The systematic allocation of the cost of a tangible asset over its useful life.

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Accounts Payable

Liabilities of a firm that are due to be paid to creditors within a short period of time, usually within a year.