China's Large Population Is an Appealing Factor to American Firms

question 34

Multiple Choice

China's large population is an appealing factor to American firms. What does this mean to American firms interested in competing in new markets?

• A) Diversification of business risk
• B) Diversification of social risk
• C) Lower costs
• D) Higher costs
• E) Greater access to new potential customers

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Definitions:

Accrued Wages

Wages that have been earned by employees but have not yet been paid by the employer.

Liabilities

Financial obligations or debts that a company owes to external parties.

Net Income

The net income of a company following the deduction of all expenses, taxes, and costs from its total revenue.

Assets

Resources owned by a business that have economic value and can be used to meet debts, commitments, or facilitate operations.