The Single Most Important Cause of Failure in International Business

question 80

Multiple Choice

The single most important cause of failure in international business is:

• A)Insufficient capital
• B)Poor management
• C)Insufficient preparation and information
• D)Poor pricing strategies
• E)Inadequate staff training

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Definitions:

Historical Rate

A reference to the exchange rate used in translating foreign currency amounts into the reporting currency for financial statements at a specific past date.

Temporal Method

A method of foreign currency translation that uses exchange rates based on the timing of the original transaction.

Property, Plant & Equipment

Long-term tangible assets used in the operation of a business that are not intended for sale, such as machinery and buildings.

Historical Rate

The exchange rate at which a foreign currency transaction was converted into the reporting currency at the time of the transaction.