Which of the Following Is True of Overseas Expansion in Businesses

question 26

Multiple Choice

Which of the following is true of overseas expansion in businesses?

• A) It leads businesses to purchase supplies in lesser numbers.
• B) It gives a firm a weaker leverage when negotiating prices with its suppliers.
• C) It results in economies of scale that lower a firm's production costs.
• D) It restricts access to more customers.
• E) It restricts the diversification of a political risk.

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Definitions:

Merchandising Business

A company that purchases goods wholesale and resells them at retail, making profit from the markup.

Perpetual Inventory System

An accounting system that records inventory purchases or sales immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Merchandise Return

Occurs when a customer returns a product to the seller for a refund, exchange, or credit, affecting the seller’s inventory and sales figures.

State Sales Tax

A tax imposed by state governments on the sale of goods and services, which varies by state and is collected by businesses at the point of sale.