The Most Significant Difference Between Direct Exporting and Indirect Exporting

question 153

Multiple Choice

The most significant difference between direct exporting and indirect exporting is that the exporting firm operates ________in the foreign country.

• A)without paying import duties
• B)without paying export duties
• C)through an intermediary
• D)in violation of a quota

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Definitions:

Loss on Disposal

The financial loss incurred when an asset is sold, discarded, or disposed of for less than its carrying value on the books.

Prior Period Adjustment

Adjustments made to a company's financial statements to correct previously made errors in those statements from earlier periods.

Cumulative Preferred

Refers to preferred stock where dividends accumulate if not paid out, with these unpaid dividends required to be paid out before any dividends can be issued on common stock.

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing company, reducing the amount of outstanding stock.