A Firm May Narrow Its Focus to a Specific Region

question 118

Multiple Choice

A firm may narrow its focus to a specific region of the world:

• A) because that market is most different from its domestic market and so represents an unexploited "greenfield opportunity" for its products.
• B) in order to obtain greater economies of scale.
• C) so that it can better understand the cultures, legal and social norms, and other factors that are important for effective competition in those markets.
• D) to take advantage of limited protections of intellectual property so that it can manufacture innovative products without restrictions.

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Definitions:

Segments

Differentiable parts of a company that can be identified by specific financial information and operations, often used for reporting purposes.

U.S. GAAP

Generally Accepted Accounting Principles in the United States, a framework of accounting standards, principles, and procedures used in compiling financial statements.

LIFO Method

"Last In, First Out," an inventory accounting method where the most recently acquired items are assumed to be sold first.

Journal Entries

The individual records of financial transactions in a company's accounting system.