All of the Following Are True About Foreign Intermediaries Except

question 35

Multiple Choice

All of the following are true about foreign intermediaries except:

• A) They are often underfinanced.
• B) They stock limited assortments of products.
• C) They are often quite small by U.S. standards.
• D) They often expect long credit terms.
• E) They often have a relatively low cost structure due to economies of scale.

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Definitions:

Variable Costs

Costs that vary directly with the level of production or with volume of services provided.

Fixed Costs

Fixed costs are expenses that do not vary with the level of production or sales within a certain range, such as rent, salaries, and insurance.

Automated Machine

A machine operated with minimal human intervention, typically using computer-controlled systems.

Margin of Safety

The difference between actual or projected sales and the break-even point, indicating the extent to which sales can drop before a business incurs a loss.