Scenario 15.1 From 2008, ForEx Inc. Has Shifted Some of Its Operations

question 40

Multiple Choice

Scenario 15.1
From 2008, ForEx Inc. has shifted some of its operations to China and Malaysia, where production costs are considerably lower compared to Canada. Since then, 35 managers have been sent to those countries either on short- or long-term assignments to head up operations, conduct training and development, or just to oversee specific projects. Of the 35 managers only 5 were women, even though women make up 40 percent of the management team. Expatriates on long- term assignments are given financial incentives to offset any qualitative differences between the costs of living in the two locations.
-Refer to Scenario 15.1. While overseas assignments can be very rewarding, it is also important to ensure that the feeling continues after repatriation. Which of the following is NOT true?

• A) 36 percent of Canadian companies have a repatriation plan
• B) one-third of Canadian companies have programs to facilitate appropriate career positions on repatriation
• C) 50 percent of Canadian companies provide this assistance after repatriation
• D) one-fifth of Canadian companies start planning for repatriation even before the candidate leaves

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Definitions:

Depreciation Expense

Depreciation Expense represents the allocation of the cost of tangible assets over their useful lives recognizing a decrease in value due to wear and tear, deterioration, or obsolescence.

Direct Financing Lease

A type of lease where the lessor effectively transfers all the risks and rewards incidental to ownership to the lessee without transferring legal ownership.

Sales-Type Lease

A lease agreement where the lessor recognizes immediate profit similar to a sale, often used in the context of finance leases in accounting.