Globalization of Resource Markets Has Resulted in the Business Practice

question 198

Multiple Choice

Globalization of resource markets has resulted in the business practice of offshoring, which involves

• A)only an outflow of jobs away from the U.S.
• B)no possible expansion of jobs in the U.S.
• C)huge losses to consumers in the U.S.
• D)both an outflow as well as an inflow of jobs in the U.S.

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Definitions:

Accruals

Accounting method where revenue and expenses are recorded when earned or incurred, regardless of when the cash transaction occurs.

Quick Ratio

A financial metric that measures a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory.

Accounts Receivable

Accounts receivable are amounts owed to a business by its customers for goods or services delivered but not yet paid for.

Inventories

Items such as goods or merchandise held by a company, intended for sale or production.