Botsford,a U

question 9

Multiple Choice

Botsford,a U.S.firm,builds automotive transmissions in its manufacturing facility in Taiwan to capitalize on the availability of cheap labor.Botsford's involvement in foreign markets is most likely through ________.

• A) joint ownership
• B) direct investment
• C) management contracting
• D) contract manufacturing
• E) indirect exporting

---

Definitions:

Credit Balance

A situation where the total credits in an account exceed the total debits; it's common in liability, revenue, and equity accounts.

Risk Assessment

The process of identifying and evaluating potential risks that could negatively affect the achievement of objectives.

Internal Control

Procedures and policies implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Debt Investments

Investments made in securities that require the issuer to repay the principal along with interest.