Which of the Following Is NOT a Disadvantage of International

question 73

Multiple Choice

Which of the following is NOT a disadvantage of international acquisitions?

• A) They are very expensive and often require debt financing.
• B) The acquiring firm has to deal with the regulatory requirements of a host country.
• C) Negotiations are complex.
• D) It is the slowest way to enter a new market.

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Definitions:

Closing Entry

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, clearing out revenues and expenses for the next period.

Wages Expense

The total cost incurred by a company for paying its employees, often reflected as an operating expense on the income statement.

Rent Expense

The cost incurred by a business to utilize property or equipment for operations, which is recorded as an expense on the income statement.

Depreciation Expense

The portion of the cost of a fixed asset that is recorded as an expense each year of its useful life.