Which of the Following Best Describes the Outlook for Small

question 238

Multiple Choice

Which of the following best describes the outlook for small businesses in international markets?

• A) The world is a larger, and potentially a more lucrative market than the U.S. domestic market.
• B) The threat of terrorist activities prevents small businesses from competing internationally.
• C) Most foreign buyers prefer to deal with large, well-known corporations rather than small businesses.
• D) Higher business costs eliminate the profit opportunities in global markets.

---

Definitions:

Profit Margin

A profitability ratio calculated as net income divided by revenue, showing the percentage of revenue that remains as profit after expenses.

Sales Increase

Refers to the rise in the amount of goods or services sold by a company over a specific period, showcasing business growth.

Cash Dividends

Payments made by a company from its earnings to its shareholders in the form of cash.

Retained Earnings

Cumulative net earnings or profit of a firm after accounting for dividends; they are reinvested in the core business or to pay debt.