Sunkist sells foreign companies the right to use the Sunkist brand on soft drinks and citrus juices sold outside the United States. Sunkist gets both an initial fee and a royalty on the sale of goods bearing its brand name. Sunkist is engaged in
A. exporting.
B. a joint venture.
C. licensing.
D. management contracting.
E. None of these answers is correct.
Answer: C
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Which of the following is/are not true?
a. U.S. GAAP and IFRS require firms to recognize the cost of retirement benefits (pensions, health care, life insurance) as an expense while employees work, not when they receive payments or other benefits during retirement. b. Employers often contribute cash to a trust, an entity administered by the employer, to fund their retirement obligations. c. The accounting records of the trust established to fund the retirement obligations are separate from the accounting records of the employer, and the amounts on the two sets of books usually differ. d. Payments to employees come from both the employer's contributions and investment returns of the trust established to fund the retirement obligations. e. all of the above
David writes the following at the start of his business plan: “Computers are used by almost everyone in today’s tech-savvy world. Computers are here to stay.” What advice would you give David?
a. Reserve this statement for the marketing section of the business plan. b. Revise this statement to explain why computers are here to stay. c. Remove the statement. It does not communicate new information. d. Keep the statement where it is as it will help establish the market size.
A license: A) Can be removed at any time only if oral
B) Is an interest in land. C) Is revocable at any time. D) None of the above
Thomas purchased an annuity for $20,000 that will pay him $500 per month for ten years. What amount should Thomas include in his income each year?
A) $0 B) $2,000 C) $4,000 D) $6,000