Higher Capital Utilization Rates May Raise User Costs of Capital

question 15

Multiple Choice

Higher capital utilization rates may raise user costs of capital because higher utilization rates may imply:

• A)operating at inconvenient times.
• B)off-peak utility prices.
• C)less highway congestion.
• D)all of the above.

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Definitions:

Exporting and Licensing

Practices in international business where goods are shipped to foreign countries (exporting) and rights are granted to use certain products, trademarks, or processes (licensing).

HR Function

The department within an organization that focuses on recruitment, management, and the direction of the people in the organization.

Polycentric Staffing Model

An international staffing strategy where host-country nationals are hired to manage subsidiaries in their own country, while parent-country nationals occupy key positions at the corporation's headquarters.

Host-Country Nationals

Employees who are citizens of the country in which a multinational company's foreign subsidiary is located, unlike expatriate employees from the company's home country.