Large Companies That Have Resources to Go It Alone May

question 83

Multiple Choice

Large companies that have resources to go it alone may have advantages in product development over small companies that do not because ________.

• A)evidence suggests that collaborative arrangements slow the speed of innovation
• B)large companies can dictate their terms of operations abroad
• C)small companies are disadvantaged in legal settlements
• D)large companies need not adapt to national differences

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Definitions:

Tax Burden

The total amount of taxes that an individual or business owes to the government, expressed as a percentage of income or revenue.

Interest Burden

The ratio of interest expenses to earnings before interest and taxes, indicating the proportion of a company's earnings consumed by interest payments.

Return On Sales

A financial ratio that calculates how efficiently a company turns sales into pretax profit.

Economic Value Added

A measure of a company's financial performance based on the residual wealth calculated by deducting cost of capital from its operating profit.