If a Firm Is Entering a Market Where There Are

question 134

Multiple Choice

If a firm is entering a market where there are already well-established incumbent enterprises,and where global competitors are also interested in establishing a presence,it may pay the firm to enter via a(n) :

• A)acquisition.
• B)establishment of a new organization.
• C)greenfield venture.
• D)partly-owned subsidiary.

---

Definitions:

Comparative Balance Sheet

A financial statement that presents the financial position of a company at two or more different points in time, side-by-side, to facilitate comparison.

Indirect Method

An accounting technique used to prepare the cash flow statement, adjusting net income for changes in non-cash working capital and non-operational gains and losses.

Direct Method

A method of allocating service department costs directly to production departments without considering inter-service department flows.

Accounts Receivable

Funds that clients or customers owe to a company for products or services provided but for which payment has not yet been received.