For Small Businesses, the Ultimate Incentive to Go Global Is

question 1

Multiple Choice

For small businesses, the ultimate incentive to go global is the following:

• A) Purely domestic firms are less likely to stay in business over the long run.
• B) Government programs are available to ensure success of global firms, but not domestic ones.
• C) If you fail to seize an international market opportunity, someone else will.
• D) Research shows that global firms experience more consistent gains in profitability.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually derived from profits.

Mergers

The voluntary amalgamation of two or more corporations to form a new entity, sharing resources, liabilities, and profits.

Horizon Problem

A situation in decision-making where the choice is influenced by the limited timeframe considered for the outcome.