Which of the Following Can Induce a Firm to Expand

question 3

Multiple Choice

Which of the following can induce a firm to expand into the international arena?

• A)Consumer preferences in the domestic market vary widely.
• B)Average income level of domestic consumers is high.
• C)The firm operates in an industry that caters to the mass market.
• D)The company wants to reduce its dependence on any one market.
• E)The firm is yet to achieve economies of scale even though the domestic market has potential.

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Definitions:

Normal Balances

The side of an account (debit or credit) where increases to the account are recorded; assets and expenses typically have debit normal balances, while liabilities, equity, and revenue have credit normal balances.

Perpetual Inventory System

An inventory tracking system that updates item records in real-time as transactions occur, providing a constant current inventory level.

Perpetual Inventory System

An inventory accounting system that records inventory purchases and sales in real-time.

Missing Amounts

Calculations or adjustments made in accounting to determine unknown figures in financial statements due to incomplete records or errors.