Which of the Following Statements Is True of Foreign Distributors

question 69

Multiple Choice

Which of the following statements is true of foreign distributors?

• A) They have little involvement with buyers or sellers outside the parent country.
• B) They purchase imported goods at a discount and resell them in the foreign or host country.
• C) They maintain a principal-agent relationship with the exporter.
• D) They do not take title to the goods being exported.

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Definitions:

Corporate Tax Rate

The corporate tax rate is the percentage of a corporation's taxable income that it must pay to the government as taxes.

Debt

A sum of money lent by one party to another, which has to be repaid at a future date, typically with added interest.

Debt Ratio

A ratio that evaluates how much a business relies on debt financing, calculated through the division of the company's total liabilities by its total assets.

Interest Rate

The amount charged by lenders to borrowers for the use of assets, expressed as a percentage of the principal.