A Domestic Firm and a Foreign Firm Sharing the Cost

question 57

Multiple Choice

A domestic firm and a foreign firm sharing the cost of developing new products or building production facilities would be called a __________.

• A) franchising agreement
• B) strategic alliance
• C) foreign subsidiary
• D) brokering agreement
• E) transnational venture

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Definitions:

Negotiable Instrument

A document in writing that ensures the payment of a certain sum of money, either when requested or at a predetermined date, with the document explicitly naming the individual responsible for payment.

Holder in Due Course

A party who has acquired a negotiable instrument in good faith and for value, and thus has certain protections against defects in the instrument and previous parties.

Payable on Demand

A financial term indicating that a debt or other financial obligation is due for payment as soon as the lender requests it.

Overdue

Referring to something, such as a payment or assignment, that has not been completed or submitted by its due date.