If a Service Firm Wants to Build a Global Presence

question 10

Multiple Choice

If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it must employ

• A) chartering.
• B) exporting.
• C) a turnkey strategy.
• D) franchising.

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Definitions:

Operating Activities

Transactions and events related to the primary operations of a business, such as revenue from sales and expenses from operations.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Direct Method

A method of computing the net cash provided by operating activities in which the income statement is reconstructed on a cash basis from top to bottom.

Indirect Method

A reporting approach used in cash flow statements where net income is adjusted for non-cash transactions and changes in working capital to arrive at cash flow from operating activities.