The Following Footnote Appeared in a Recent Annual Report to Stockholders

question 198

Essay

The following footnote appeared in a recent annual report to stockholders of Starbucks Corporation: "Initial nonrefundable development fees required under licensing agreements are recognized upon substantial performance of services for new market business development activities, such as initial business, real estate, and store development planning, as well as providing operational materials and functional training courses for opening new licensed retail markets. Additional store licensing fees are recognized when new licensed stores are opened."
Briefly explain why Starbucks recognizes this type of revenue as it does.

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Definitions:

Radical Feminist

A perspective within feminism that calls for a radical reordering of society to eliminate male supremacy in all social and economic contexts, often focusing on the patriarchy as a system of power.

Fundamental Form

The most basic or essential structure or nature of an entity or concept.

Control of Women

The practices, structures, and social norms aimed at regulating women's behavior, appearance, and roles in society.

Experiments

Structured and controlled tests or investigations designed to examine hypotheses and observe effects of manipulated variables.