As Discussed in the Text, the Main Requirement for a Company

question 145

Multiple Choice

As discussed in the text, the main requirement for a company seeking to establish distribution of their products in foreign markets is ________.

• A)Low currency exchange rate
• B)Suitable intermediary
• C)Reliable distribution system
• D)Low prices
• E)Railroads

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Definitions:

Costs

The monetary valuation of effort, material, resources, time, and opportunity foregone in production and delivery of a good or service.

Retention Ratio

The proportion of a company's net income that is retained rather than paid out as dividends, indicating reinvestment back into the company.

Return on Assets

A financial ratio that indicates how profitable a company is relative to its total assets.

Internal Growth Rate

The maximum rate at which a company can expand using only internal financing without resorting to borrowing or selling equity.