Of the following which cash flow provides pure profit to the parent company: licensing agreements, royalties, and overhead allocation fees?
What will be an ideal response?
Answer: Licensing agreements, royalties, and overhead allocation fees are true costs to the subsidiary or to the stand-alone firm that would be operating in the foreign country producing and selling the products of the multinational corporation. Thus, licensing agreements, royalties, and overhead allocation fees reduce the income in the foreign country. Nevertheless, these cash flows provide profit to the parent corporation. Licensing agreements and royalties provide pure profit to the parent as no costs are incurred, and overhead fees provide net profit as they cover costs incurred by the parent. Thus, these
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Pack-it Co. sold a packaging machine to Boxes Ltd. and nothing was said in the contract about any guarantee of quality or performance. The machine broke down after one day of use. Which of the following statements is true?
A) Boxes Ltd bought "as is" and must pay the cost of the repair itself. B) The Sale of Goods Act implies a term of fitness for general use into the agreement even thought the parties said nothing about it. C) The courts will imply a warranty into an agreement by common law principles. D) Boxes may rely on Pack-it's express warranty. E) None of the above.
The idea of collective intelligence in groups refers to the face that the intelligence of a group is approximately the same as the average problem-solving ability of group members
Indicate whether the statement is true or false.