Which Statement Accurately Describes Why the American Business Community in 1911

question 77

Multiple Choice

Which statement accurately describes why the American business community in 1911 was nervous about the future of its investments in Mexico?

• A) Mexico's new leader, Francisco Madero, had promised economic reform for landless peasants.
• B) The corruption under Porfirio Díaz had triggered a wave of hyperinflation in the Mexican economy.
• C) The United States had invaded Mexico, and American businessmen there feared reprisals.
• D) American businesses were afraid that their foreign investments would be confiscated for use in World War I.

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Definitions:

Manufacturing Department

A specific division within a company where goods are produced, focusing on the transformation of raw materials into finished products.

Absorption Costing

An accounting method that includes all manufacturing costs — direct materials, direct labor, and both variable and fixed manufacturing overhead — in the cost of a product.

Operating Income

A measure of a company's profit that excludes non-operating expenses and revenues, focusing solely on the income generated from its core business operations.

Inventory Levels

The quantity of goods and materials on hand at a particular time within a company.