Which One of the Following Is Not True of Global

question 90

Multiple Choice

Which one of the following is not true of global organizations?

• A)They compete on state-of-the-art,top-quality products and services with lowest costs possible
• B)They increasingly emphasize flexibility and mass customization of products to meet the needs of particular clients
• C)They are usually driven to locate facilities in a country as a means of reaching that country's market or lowering production costs and must deal with the differences across the countries
• D)They attempt to create synergy through cultural differences

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Definitions:

Rent Expense

An operating expense incurred for the use of property or equipment, recognized over the period of the lease agreement.

Capital Lease

A lease agreement that allows a lessee to use an asset in exchange for payment, with terms that transfer substantially all risks and benefits of ownership.

Operating Leases

Leases used for short-term leasing of assets, where the lessee does not assume the risk of ownership, and the asset will be returned to the lessor at the end of the lease term.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets to generate sales revenue, calculated by dividing sales revenue by the average total assets.