Nike provides technical specifications to a subcontractor or local manufacturer for its products. What is this arrangement called and what are its major benefits and drawbacks

Explanation:

The defined process is Contract manufacturing agreement .

Contract manufacturing agreement is a process where a client agrees with a manufacturer to design , manufacture according to specified requirements and deliver these goods which the client intends to integrate into his own final products.

Major benefits

It offers expertise skills in the process of production

Cost saving in capital , labor and other costs related to production, budgets are better managed and profit increases

It also gives time to focus on other business related activities

Drawback

Poor manufacturer might be engaged if research was not properly done before engagement . leading to bad products and bad reputation in the market

There is also a risk of potential delay in delivery

they allow producers to sell their products more cheaply than foreign competitors. - ( c.)

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.