Which of the Following Best Describes the Outlook for Small

question 157

Multiple Choice

Which of the following best describes the outlook for small businesses in international markets?

• A)the world is a larger,and potentially a more lucrative market than the U.S.domestic market
• B)the threat of terrorist activities prevents small businesses from competing internationally
• C)most foreign buyers prefer to deal with large,well-known corporations rather than small businesses
• D)higher business costs eliminate the profit opportunities in global markets

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Definitions:

Net Income

The total earnings or profit of a company after subtracting all expenses, including taxes and operating expenses, from its total revenue.

Gross Profit

Revenue minus the cost of goods sold, indicating the efficiency of a company in managing its labor and supplies in producing goods.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding direct production costs, such as rent, utilities, and administrative salaries.

Perpetual Inventory System

An inventory accounting system where adjustments to inventory levels are continuously recorded on a transaction by transaction basis.