Sun-Jun Is a Representative for a Chinese Company That Is

question 107

Multiple Choice

Sun-Jun is a representative for a Chinese company that is based in Confucian culture. When Sun-Jun mentions to his staff that guanxi should be taken into consideration, what is he referring to?

• A) the ability to produce the best product at the lowest cost
• B) relationships or connections the business has
• C) government tariffs that could affect business
• D) building a company from the ground up
• E) working with foreign nationals who have opposing views

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Definitions:

Scrap Value

The estimated residual value of a fixed asset at the end of its useful life, often considered when calculating depreciation.

Incremental Annual

Refers to the additional yearly impact or benefits resulting from a specific decision or action.

Payback Period

The length of time required to recover the cost of an investment.

Required Rate

The minimum expected rate of return on an investment, project, or loan, often used in evaluating its viability.