Internationally Diversified Firms

question 116

Multiple Choice

Internationally diversified firms:

• A) earn greater returns on their innovations through larger or more numerous markets.
• B) are more likely to produce below-average returns for investors in the long run.
• C) may need to decrease international activities when domestic profits are poor.
• D) are generally unable to achieve high levels of synergy because of differences in cultures.

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Definitions:

Sales

The total revenue earned from the sale of goods or services by a company during a specified period.

Net Price Method

An accounting method that records purchases at the net cost, after deducting any purchase discounts, rather than recording them at the gross cost.

Cash Discounts

Reductions in the price of goods or services offered to customers as an incentive for early payment.

Sales Returns

Transactions where the buyer returns previously purchased merchandise back to the seller for a refund or exchange, reducing the seller's revenue.