Apollo Tires sets up a manufacturing unit in Mexico. Following this, Renault-Nissan signs a supply contract with the tire multinational. In which of the following ways is Renault-Nissan likely to gain from the pact?
A. growth potential and large size of the market
B. knowledge sharing within same value chain system
C. availability of natural resources at low cost
D. different styles of management, organization, and strategy
E. government policies in the host country
Answer: B
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Failure to record depletion for a given accounting period will result in
A) understated total assets. B) understated total liabilities. C) overstated net income. D) overstated total liabilities.
CRM is a variation of the positioning approach.
Answer the following statement true (T) or false (F)
Which of the following is not an element of risk management?
A. Risk engineering planning. B. Risk response planning. C. Risk identification. D. Quantitative risk analysis.
Matt and Sheila form Krupp Corporation. Matt contributes property with an FMV of $55,000 and a basis of $35,000. Sheila contributes property with an FMV of $75,000 and a basis of $40,000. Matt sells his stock to Paul shortly after the exchange. The transaction will
A) not qualify under Sec. 351. B) qualify under Sec. 351 if Matt can show that the sale to Paul was not part of a prearranged plan. C) qualify with respect to Sheila under Sec. 351 whether Matt qualifies or not. D) qualify under Sec. 351 only if an advance ruling has been obtained.