Apart from Business Growth, There Are a Number of Other

question 2

Multiple Choice

Apart from business growth, there are a number of other good reasons for selling products internationally. Which of the following are valid reasons?

• A) To spread risk
• B) The firm has excess production capacity
• C) To extend the product life cycle
• D) All of these
• E) None of these

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Definitions:

Debt Securities

Financial instruments representing a loan made by the investor to the issuer, which can include government bonds, corporate bonds, and other types of debts.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, recorded in the cash flow statement.

Financing Activities

Transactions related to raising capital, repaying loans, and paying dividends, reflecting in the cash flow from financing section of a firm's cash flow statement.

Distributing Cash

Refers to the process of delivering or allocating cash holdings to various parties, such as dividends to shareholders or payments to creditors.