Internationally Diversified Firms

question 116

Multiple Choice

Internationally diversified firms:

• A) earn greater returns on their innovations through larger or more numerous markets.
• B) are more likely to produce below-average returns for investors in the long run.
• C) may need to decrease international activities when domestic profits are poor.
• D) are generally unable to achieve high levels of synergy because of differences in cultures.

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Definitions:

Defined Benefit Pension Plan

A retirement plan where the employer guarantees a specified pension payment upon the employee's retirement, determined by a formula considering factors such as salary history and duration of employment.

Anticipated Life Span

The expected duration or period during which an asset, product, or individual is considered useful or viable.

Pension Expense

The cost recognized in an accounting period related to the company's pension plan.

Defined Contribution Pension Plan

A type of retirement plan where an employer, employee, or both make contributions and the final payout depends on the plan's investment performance.