The Decision of What Entry Mode to Use Is Primarily

question 74

Multiple Choice

The decision of what entry mode to use is primarily based on all of the following factors EXCEPT:

• A) the industry's competitive conditions.
• B) the country's situation and government policies.
• C) the worldwide economic situation.
• D) the firm's unique set of resources, capabilities, and core competencies.

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Definitions:

Average Collection Period

The average number of days it takes for a company to receive payment from its customers for invoices issued.

Accounts Receivable Turnover

A financial ratio indicating how many times a company's receivables are converted into cash over a period, measuring the efficiency of a company in collecting its debts.

Current Ratio

A financial ratio indicating a firm's capacity to settle short-term debts using its current assets.

Current Liabilities

Obligations or debts that a company expects to pay or settle within one year or its operating cycle, whichever is longer.