Global Business Includes Both International (Cross-Border) Activities as Well as Domestic

question 44

True/False

Global business includes both international (cross-border) activities as well as domestic business activities.

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Definitions:

Credit Terms

The conditions, including payment deadlines and interest rates, that a seller extends to a buyer.

Trade Credit

Short-term financing provided by suppliers, allowing buyers to purchase goods or services on account without immediate cash payment.

Compensating Balances

A requirement by some banks for companies to maintain a minimum balance in their account as part of a loan agreement, effectively reducing the amount of usable cash.

Management Policy

Guidelines and rules set by an organization's management to direct operations and decision-making in alignment with the company's objectives.