There Are Three Types of Structures That Companies Use to Manage

question 12

Multiple Choice

There are three types of structures that companies use to manage foreign activities. Which one of the following is not one of those activities?

• A) Free fluctuation
• B) Little or no formal organization recognition of international activities
• C) International division
• D) Global organizations

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Definitions:

Retained Earnings Account

An equity account that represents the accumulated portion of net income not distributed to shareholders in the form of dividends.

Current Ratio

A financial liquidity metric that compares a company's current assets to its current liabilities, used to evaluate its ability to pay short-term obligations.

Temporary Accounts

Accounts that track revenues and expenses within a specific accounting period and are reset to zero at the period’s end.

Prepaid Rent

A type of asset account on the balance sheet that represents rent payments made in advance of the rental period.