The Creation of a Third-Party Legal Entity Is Required For___________,whereas

question 98

Multiple Choice

The creation of a third-party legal entity is required for___________,whereas for ________ it is not.

• A) licensing agreements; joint ventures
• B) strategic alliances; joint ventures
• C) joint ventures; strategic alliances
• D) franchising agreements; strategic alliances

---

Definitions:

Business Expense

Monetary outlays or costs that are necessary for a company to operate and conduct its business activities.

Leasing Arrangement

A contractual agreement where a lessor allows a lessee to use an asset in exchange for periodic lease payments.

Encumbered Assets

Assets that are used as security or collateral for a loan or debt, restricting their free use or disposal by the owner.

Secured Borrowing

A type of loan in which the borrower pledges an asset as collateral for the loan, which the lender can claim if the loan defaults.