Which of the Following Is a Reason Why Companies Move

question 7

Multiple Choice

Which of the following is a reason why companies move into international operations?

• A) To take advantage of lower production costs in regions of inexpensive labour.
• B) To develop new markets for their finished products.
• C) To better serve their primary customers.
• D) Because important raw materials are located abroad.
• E) All of the above.

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Definitions:

Debenture

An unsecured loan certificate issued by a company, backed by general credit rather than by specified assets.

Issuing Firm

A company that offers securities to the public or existing shareholders.

Unfunded Bond

A bond issued without a specific reserve fund set aside for its repayment, relying solely on the issuer's general creditworthiness.

Callable Bond

A callable bond is a type of bond that gives the issuer the right to pay off the bond before its scheduled maturity date at a predefined call price.