All of the Following Are Limitations of a Global Strategy

question 28

Multiple Choice

All of the following are limitations of a global strategy, except

• A) limited ability to adapt to local markets.
• B) the ability to locate activities in optimal locations.
• C) the concentration of activities may increase dependence on a single facility.
• D) single locations may lead to higher tariffs and transportation costs.

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Definitions:

Income Statement Approach

Refers to a methodology in accounting that emphasizes calculating the profitability of a business by deducting total expenses from total revenues to arrive at the net income, showcasing the company's financial performance over a specific period.

Allowance for Doubtful Accounts

An estimation of the amount of accounts receivable that may not be collected, used to reduce the overall accounts receivable value on the balance sheet.

Adjustment

A process of altering the value of accounts to more accurately reflect their true value at the end of an accounting period.

Balance Sheet Approach

A method of estimating an allowance for doubtful accounts based on the accounts receivable's ending balance, helping to present a more accurate picture of a company's financial health.