Which of the Following Is an Example of Licensing

question 5

Multiple Choice

Which of the following is an example of licensing?

• A)When a company allows another company to pay it a fee to train its employees.
• B)When a company allows a foreign company to pay it a fee to make or distribute the first company's product or service.
• C)When a company pays a competitor a fee to stop the competitor from selling its products in the company's territory.
• D)When a company develops a strategic plan for another organization.
• E)When a company barters goods for goods in lieu of a monetary payment.

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Definitions:

Consolidation

The process of combining the financial statements of separate companies into a single, aggregated financial statement.

Consolidated Retained Earnings

The cumulative amount of earnings of a corporation and its subsidiaries after dividends have been paid, as reported in consolidated financial statements.

Retained Earnings

The portion of net profits left in the company after dividends have been paid to shareholders.

Voting Shares

Shares that give the shareholder the right to vote on matters of corporate policy and the election of board members.