All of the Following Are Considered Benefits of Forming Joint

question 2

Multiple Choice

All of the following are considered benefits of forming joint ventures EXCEPT:

• A) greater return potential.
• B) shared profits instead of shared royalties.
• C) more control over operations.
• D) increased cost controls.
• E) synergies.

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Definitions:

Net Float

The difference between checks written against and deposited in an account and those that have been cleared and charged against the account.

Short-term Investments

Financial assets that are expected to be converted into cash or sold within a short timeframe, usually one year or less.

Zero-balance Account

A checking account set up to maintain a balance of zero by automatically transferring funds from a master account in the exact amount of transactions.

Miller-Orr Model

A financial model used for managing cash balances by setting upper and lower limits on cash reserves.