Which of the Following Statements Is True in the Context

question 63

Multiple Choice

Which of the following statements is true in the context of local demand conditions?

• A) Companies are typically least sensitive to the needs of their closest customers.
• B) Home demand plays little role in helping companies upgrade their national competitive advantage.
• C) A nation's companies gain competitive advantage if their domestic customers are sophisticated and demanding.
• D) The characteristics of international demand alone shape the attributes of a company's products; not local demand.
• E) Local demand characteristics have little role to play in creating pressure for innovation and quality.

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Definitions:

Operating Income

The profit realized from a business's operations after deducting operating expenses from gross profit.

Dividends

Financial distributions to a corporation's shareholders, usually coming from the business's earnings.

Quantity Variance

A variance that is computed by taking the difference between the actual quantity of the input used and the amount of the input that should have been used for the actual level of output and multiplying the result by the standard price of the input.

Standard Quantity

The expected or planned amount of materials or inputs required for the production of a unit of product, based on efficient operations.