Which of the Following Is the Primary Advantage of Exporting

question 72

Multiple Choice

Which of the following is the primary advantage of exporting as a foreign market entry strategy?

• A) Provides a firm total control over its foreign operations
• B) Ability to generate revenue
• C) Exporting is a relatively inexpensive way for a firm to become involved in foreign markets.
• D) The exporting company's customers put up most of the capital needed to establish the export operation.
• E) Exporting involves very little effort on the part of a firm.

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Definitions:

Closing Entries

These are journal entries made at the end of an accounting period to transfer temporary accounts to permanent accounts, hence preparing the books for the next period.

Revenue Accounts

Accounts used to record the income generated from the sale of goods or services in the normal course of business.

Expense Accounts

Accounts in financial accounting that track the costs of operating a business, including costs for materials, labor, and overhead.

Permanent Accounts

These are balance sheet accounts whose balances are carried forward from one accounting period to the next, including assets, liabilities, and equity accounts.