From an Economic Standpoint, a Threat to the Global Manager

question 34

Multiple Choice

From an economic standpoint, a threat to the global manager is ________.

• A) marginal revenues exceeding marginal costs
• B) a stable exchange rate between currencies in various countries
• C) widely fluctuating inflation rates in foreign countries
• D) all of the above

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Definitions:

Capital Expenditures

Capital allocated by an enterprise for the purchase, improvement, and upkeep of tangible assets like land, factories, or machinery.

GAAP Warranty Expenses

Expenses recognized in accordance with Generally Accepted Accounting Principles (GAAP) related to the estimated cost of warranties on sold products.

Permanent Tax Difference

A discrepancy between taxable income and accounting income that will not reverse over time, affecting the tax and financial statements differently.

Taxable Income

The amount of income used to determine how much tax an individual or a company owes to the government in a given tax year.