An Advantage of Global Expansion May Be

question 38

Multiple Choice

An advantage of global expansion may be:

• A) diversification of consumer markets.
• B) lower product quality.
• C) employee turnover.
• D) increased debt.

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Definitions:

Minimum Required Rate Of Return

The lowest return on investment that a person or organizational entity, like a company, would accept for a given investment.

Stockholders' Equity

Represents the owners' claim after subtracting total liabilities from total assets; it consists of initial capital investment, retained earnings, and additional paid-in capital.

Net Operating Income

The income that comes from a firm's primary business activities, not including the subtraction of interest and taxes.

Average Operating Assets

The average value of the assets involved in the daily operations of a business over a specific period, used to measure efficiency.