Media Stories About Unsafe Working Conditions at Overseas Suppliers,such as the 2013

question 36

Multiple Choice

Media stories about unsafe working conditions at overseas suppliers,such as the 2013 garment factory disaster in Bangladesh,lead to what indirect cost for Canadian companies?

• A)fines and penalties
• B)increased strikes
• C)negative publicity
• D)increased unionization

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Definitions:

Equity Method

An accounting technique used by companies to record their investments in other companies, wherein the investment is initially recorded at cost and subsequently adjusted to account for the investor's share of the investee's profits or losses.

Intra-entity Gross Profit

Gross profit arising from transactions within the same company, often requiring elimination during consolidation.

Cost of Goods Sold

The direct expenses related to the production of goods sold by a company, including materials and labor costs.

Intra-entity Transfer

Transactions that occur between divisions or units within the same company, often involving the transfer of goods or services.