A Characteristic of a Non-Equity Cross Border Alliance Is

question 39

Multiple Choice

A characteristic of a non-equity cross border alliance is:

• A) One which establishes subsidiaries thru Greenfield investments or acquisitions
• B) The purchase of shares of an enterprise in a country other than its own
• C) No other party has to provide financial contribution
• D) Each party cooperates as a separate legal entity and bears its own liabilities

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Definitions:

Debit And Credit Balance

Accounting terms where debit balances typically exist in asset and expense accounts, and credit balances in liability, equity, and revenue accounts.

Normal Balance

The side of an account (debit or credit) that is expected to have a higher balance, based on accounting rules.

Owner's Drawings

Removal of funds or other valuables from a company by the proprietor for their personal benefit.

Cash

A form of liquid asset that represents immediately available funds for transaction, trade, and settling debts.