Which of the Following Is an Advantage of Direct Exporting

question 8

Multiple Choice

Which of the following is an advantage of direct exporting?

• A) The owner has a greater degree of control over all aspects of the transaction.
• B) It does not require a lot of organizational effort or staff workers.
• C) The business has limited liability for product marketing problems.
• D) The producer of the goods is subject to only small dangers and risk.
• E) The owner does not have to be concerned with shipment and other logistics.

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Definitions:

Recording Purchases

The process of documenting transactions related to acquiring goods or services, essential for accurate financial reporting and inventory management.

Cash Discounts

These are deductions allowed by sellers on invoice amounts if the buyer pays promptly within a specified period, serving as an incentive for early payment.

Perpetual Inventory System

An inventory management method where records are continuously updated to reflect buys, sells, and stock levels in real-time.

Gross Method

An accounting practice where discounts for early payment are not considered until they are actually taken by the purchaser.