Fizzy Is an American Firm That Manufactures Carbonated Soft Drinks

question 72

Multiple Choice

Fizzy is an American firm that manufactures carbonated soft drinks.Fizzy executives want to enter the global market, and they are considering the idea of a joint venture with a beverage company located overseas.After conducting research on different beverage firms, Fizzy executives selected a large beverage manufacturer located in China.Kevin Burns and three other top-level executives at Fizzy have been assigned to the negotiating team.The team has flown to China to negotiate the details of the joint venture.Which of the following best supports Kevin's argument that he should be the primary negotiator?

• A)Kevin has an aggressive and explicit attitude.
• B)Kevin leads all negotiations with domestic U.S. firms.
• C)Kevin is the oldest and the most experienced person on the negotiating team.
• D)Kevin has full knowledge of guanxi; therefore, he should lead the team.

---

Definitions:

Effective Tax Rate

The average rate at which an individual or corporation is taxed, calculated as the total tax paid divided by the taxable income.

State Tax

Taxes imposed by individual states on income, property, goods, and services within their jurisdiction.

Federal Tax

The tax levied by the national government on income, sales, gifts, and other transactions.

After Tax Yield

The income return on an investment after taxes have been deducted, revealing the net gain to the investor.