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Scenario - Windmere Technologies Windmere Technologies Has Been in Operation

question 48

Multiple Choice

Scenario - Windmere Technologies Windmere Technologies has been in operation since 1984. Today, Windmere is actually considered to be a globally-based firm with corporate offices in thirteen foreign nations. There is not one office of this company with higher authority or more decision making power than any other of the thirteen in operation. Windmere Technologies is recognized as a business leader in all thirteen nations in which it has corporate offices. According to the CEO of the company, "Windmere considers the world to be its home base." The management has done a good job of creating its organizational structure where people are grouped simultaneously by function and by division. Windmere is best known for its work in creating alternative energy sources. As this is of vital concern to all nations of the world today, Windmere's ideas and products are welcomed by all nations. This business takes in revenues in excess of $8 billion per year and expects it to substantially increase in the future.Which one of the following best describes Windmere Technologies claim that the world is its home base?

Definitions:

Equity Method

An accounting technique used by a company to record its investments in other companies, where the investment is initially recorded at cost and subsequently adjusted to reflect the investing company's share of the investee's net income or losses.

Net Income

Net income refers to the total profit of a company after all expenses, taxes, and deductions have been subtracted from total revenue.

Owned Subsidiary

A company whose majority of shares or voting rights are held by another company, making it a controlling entity.

Equity Method

The equity method is an accounting technique used by firms to assess the profits earned by their investments in other companies by reporting these profits in proportion to their ownership.