Which of the Following Forms of Organizing a Global Business

question 5

Multiple Choice

Which of the following forms of organizing a global business help companies to avoid tariff and nontariff barriers to entry of a given foreign market?

• A) licensing
• B) franchising
• C) global joint ventures
• D) wholly owned affiliates
• E) all of these

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Definitions:

Allowance for Doubtful Accounts

An accounting provision representing an estimate of accounts receivable that may not be collected.

Bad Debt Expense

An accounting expense representing accounts receivable that a company does not expect to collect.

Allowance Method

An accounting technique used to estimate the amount of uncollectible accounts receivable that will not be paid by debtors, allowing companies to record these anticipated losses as an expense.

Bad Debt Expense

An expense reported on the income statement, representing the estimate of receivables that a company does not expect to collect.