Which of the Following Is a Difference Between Export Management

question 16

Multiple Choice

Which of the following is a difference between export management companies (EMCs) and export trading companies (ETCs) ?

• A)ETCs deal with both exports and imports, while EMCs deal only with exports.
• B)ETCs are subject to antitrust laws, while EMCs are not.
• C)ETCs typically carry inventory, while EMCs typically do not.
• D)ETCs operate more on the basis of demand, while EMCs operate more on the basis of supply.

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Definitions:

Equity Multiplier

A financial ratio that measures the portion of a company's assets that are financed by shareholder's equity, providing insights into leverage.

Profit Margin

A financial performance ratio, calculated by dividing net income by sales revenue, indicating how much profit a company keeps from its sales.

ROE

Return on Equity (ROE) is a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively a company uses investments to generate earnings growth.

P/E Ratio

Price to Earnings Ratio, a valuation metric comparing a company's market share price to its per-share earnings.