Skaredykat Inc

question 86

Multiple Choice

Skaredykat Inc. is considering initial expansion beyond its home market. The firm has decided not to enter markets that differ greatly from its home market,instead expanding within the twelve-nation region that includes its home country.

• A)The firm is not engaging in international trade.
• B)The firm is using a regional approach to international expansion.
• C)The firm will not be able understand the cultures, legal, and social norms of this market.
• D)Skaredykat is a scaredy-cat.

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Definitions:

Working Capital Policy

A strategy relating to managing a firm's short-term assets and liabilities with the objective of maintaining sufficient liquidity to carry out operations smoothly.

Top Management

The highest level of managers and executives who have the day-to-day responsibilities of managing a company or corporation, making strategic decisions.

Financing Nature

The characteristic manner or method in which a company prefers to finance its operations, typically equity, debt, or a hybrid.

Spontaneous Financing

Financing provided by current liabilities that arise automatically as a result of doing business.