Credible Commitments Refer To

question 55

Multiple Choice

Credible commitments refer to:

• A)believable promises that support the development of a long-term relationship between companies.
• B)the merging of two companies that have an equal market share.
• C)to obtaining of goods, services or works from an external source.
• D)the acquisition of one company by another company.
• E)the outsourcing of after-sale services to a different company.

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Definitions:

Balance Sheet

A financial statement that displays a company's assets, liabilities, and shareholders' equity at a particular point in time.

Contributed Capital

The total value of the capital that shareholders have directly invested in the company through the purchase of its stock.

Earned Capital

The portion of shareholders' equity derived from profitable operations, representing retained earnings and not contributed capital.

Common Shares

Equity investments that represent a unit of ownership in a corporation and give shareholders voting rights and dividends.