Caterpillar and Texas Instruments Are Two Firms That Have Benefited

question 8

Multiple Choice

Caterpillar and Texas Instruments are two firms that have benefited from the use of

• A) the multidomestic strategy option.
• B) the multinational corporation strategy.
• C) the transnational strategy option.
• D) the maquiladora system in Europe.
• E) the global strategy option.

Calculate and interpret profitability ratios such as net income margin and return on equity.

Calculate and interpret solvency ratios and understand their relevance to long-term financial sustainability.

Understand the implications of paying dividends and how it affects shareholders’ wealth.

Analyze and compute the earning per share (EPS) and price-earnings (P/E) ratios for investment appraisal.

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Definitions:

Tablet Computers

Tablet computers are portable, thin electronic devices equipped with a touchscreen interface, offering a combination of computing, internet, and multimedia capabilities.

Estimated Warranty Expense

A projected cost that a company expects to incur for repairing or replacing products under warranty.

Actual Warranty Costs

The real expenses incurred when repairing or replacing products under warranty.

State Unemployment Tax

A tax imposed by state governments paid by employers to fund unemployment benefits for workers who have lost their jobs.