How Are Honda, Sony, and Toyota Creating Difficulties for Sogo

question 12

Multiple Choice

How are Honda, Sony, and Toyota creating difficulties for sogo shoshas?

• A)Their keiretsu derived power is forcing sogo shoshas to reduce prices.
• B)The companies are lobbying the Japanese government for sogo shosha reform.
• C)The companies have set up their own direct export-sales networks.
• D)The companies are using U.S. trading companies to distribute their products.

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Definitions:

Interest Revenue

Income earned by an entity from lending money or making investments that bear interest.

Reportable Segments

These are components of a business where separate financial information is available and is reviewed regularly by the operating decision maker for the purpose of resource allocation and performance assessment.

Operating Profit

Earnings before interest and taxes (EBIT), an indicator of a company's profitability from its core operations excluding financing costs and taxes.

Segment Assets

These are the specific assets that are attributed to a company's business segment, helping to analyze performance by division.