James Abercrombie Has a Thriving Consulting Firm Specializing in Training

question 37

Multiple Choice

James Abercrombie has a thriving consulting firm specializing in training boards of directors in decision-making skills. Mr. Abercrombie has had striking success in reducing conflict and hostility among directors and allowing boards to develop more cohesiveness. Mr. Abercrombie is considering expanding his consulting practice overseas. Which of the following statements is most likely to be TRUE?

• A)Mr.Abercrombie will have a large market in Japan because the culture highly values consensus decision making.
• B)Japanese firms will have little interest in Mr.Abercrombie's specialty because these skills are already practiced at a high level.
• C)German firms will not be interested in Mr.Abercrombie's services because the German system of decision making is based on authority and few conflicts emerge.
• D)Mr.Abercrombie should find significant need for his services in companies in transitional economies.

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Definitions:

Long Run

In economics, a period in which all factors of production and costs are variable, allowing all inputs to be adjusted.

Average Variable Cost

The total variable costs of production divided by the quantity of output produced, representing the cost per unit of output.

Total Revenue

The complete sum of funds a company acquires from selling goods or offering services over a specified time period.

Operating Profit

The profit earned from a firm's core business operations, excluding deductions of interest and taxes.