A USCompany Agrees with a Foreign Company to Start a New

question 36

Multiple Choice

A U.S.company agrees with a foreign company to start a new enterprise together in a foreign country, sharing the risks and the rewards.This is called a

• A)countertrade.
• B)greenfield venture.
• C)wholly owned subsidiary.
• D)strategic alliance.
• E)maquiladora.

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Definitions:

Signature Liability

Liability that is attributed because of a party’s signature on an instrument.

Warranty

(1) An assurance, either express or implied, by one party that the other party can rely on its representations of fact. (2) In sales, a binding promise regarding a product in the event that the product does not meet the manufacturer's or seller's promises.

Proper Tender

The act of presenting an exact amount of money in the appropriate form as payment for a debt or obligation.

Endorsers Discharged

Refers to the situation where endorsers (persons who sign documents, typically negotiable instruments, to endorse them) are released from their obligations under the instrument.