Which of the Following Is NOT an Incentive for Firms

question 107

Multiple Choice

Which of the following is NOT an incentive for firms to become multinational?

• A) To gain access to consumers in emerging markets
• B) To gain easier access to raw materials
• C) To avoid high domestic taxation on corporate income
• D) Opportunities to integrate operations on a global scale

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Definitions:

Consignment

A business arrangement in which goods are left in the possession of another party to sell, but ownership remains with the supplier until the goods are sold.

Inventory Items

Goods and materials that a business holds for the ultimate goal of resale or production in the course of operations.

LIFO Method

An inventory valuation method that assumes the last items placed in inventory are the first ones sold; LIFO stands for Last-In, First-Out.

FIFO Method

First In, First Out, an inventory valuation method that assumes that the first items placed into inventory are the first sold.