While IT Motors Is Located in China, It Has Allowed

question 7

Multiple Choice

While IT Motors is located in China, it has allowed management in all of its international operations to make independent decisions on how they conduct business in their different environments. What kind of corporation is IT Motors?

• A) a multidomestic corporation
• B) an international corporation
• C) a global corporation
• D) a transnational corporation

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Definitions:

Notes Receivable

Financial assets representing the right to receive payments from a debtor for a specified amount by a certain date.

Receivables Turnover

A financial ratio indicating how quickly a company collects outstanding accounts receivable.

Current Ratio

A liquidity ratio that measures a company’s ability to cover its short-term liabilities with its short-term assets.

Inventory Turnover

A ratio that measures how many times inventory is sold and replaced over a certain period, used to evaluate the efficiency of a company's inventory management.