When American Manufacturers First Started Exporting Refrigerators to Europe, They

question 10

Multiple Choice

When American manufacturers first started exporting refrigerators to Europe, they essentially exported the same models sold in the United States. However, the refrigerators were the wrong size, shape, and temperature range for some areas and had weak appeal in others-thus failing miserably. This failure can be best attributed to

• A) the lack of personal selling on the part of the sales force.
• B) entering a domestic market without extensive product planning.
• C) the lack of adequate pricing strategies in foreign markets.
• D) problems encountered in effectively using census data.

---

Definitions:

Long-Term Assets

Long-term assets are assets that a company expects to use for more than one year, including property, plant, equipment, and intangible assets.

Notes Receivable

Financial assets representing amounts due to be paid to a company by customers or other entities in the form of promissory notes.

Direct Method

A method of preparing the cash flow statement where actual cash flow information from the company's operations is used, as opposed to indirect method adjustments.

Operating Cash Receipts

Money received by a company from its operational activities, such as sales of goods or services.