In the Context of Doing Business in Asia, What Is

question 70

Multiple Choice

In the context of doing business in Asia, what is meant by the phrase "the contract is in the relationship, not on the paper"?

• A)Asian contracts are not legally binding for MNCs.
• B)Contracts are ceremoniously destroyed after they are written.
• C)Managers risk being offensive to Asians by requiring contracts.
• D)Managers should nurture the relationship to ensure the reliability of the contract.

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Definitions:

Financial Statement

Documents that present the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.

Statement of Retained Earnings

This report outlines the fluctuation in a company’s retained earnings over a particular accounting timeframe, incorporating elements like net profits and dividend distributions.

Cash Flow Statement

A financial document summarizing the total cash received by a company from its operational activities and external investments, alongside all expenditures on operations and investments within a specific timeframe.

Equipment Account

An account on a company's balance sheet that reports the value of the company's equipment used in operations, less any accumulated depreciation.