In Light of Mounting Competitive and Cost-Cutting Pressures in the U.S

question 58

Multiple Choice

In light of mounting competitive and cost-cutting pressures in the U.S., the need for health care services in Mexico and the potential of the Mexican economy, many U.S. hospitals are expanding their services to Mexico. For example, University Medical Center in Tucson, Arizona, provides continuing education classes for Mexican physicians, a toll-free telephone consultation line into Mexico and air transport service into Mexico. By expanding its services into Mexico, University Medical Center is using a _____ grown strategy.

• A) Share building
• B) Market development
• C) Service development
• D) Diversification
• E) Market integration

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Definitions:

Partial Equity Method

An accounting approach where an investor recognizes income from its investment in an associate to the extent of dividends received, differing from the full equity method which recognizes income as it's earned by the associate, regardless of dividends received.

Fair Value

The exchange value of an asset or the settlement cost of a liability in a well-arranged transaction with participants in the market on the measurement occasion.

Book Value

The net value of a company's assets minus its liabilities, often used as a measure of the company's worth.

Equipment

Tangible property used in the operation of a business that is not intended for sale, including machinery, tools, and vehicles.