The Choice of a Particular International Market Entry Mode Depends

question 20

Multiple Choice

The choice of a particular international market entry mode depends on a range of factors including the size of the market and its growth potential. Markets of limited size surrounded by trade barriers may be supplied most cost effectively via:

• A)licensing or contract manufacturing.
• B)a local production and marketing subsidiary.
• C)exporting.
• D)selective distribution.
• E)none of the above

Understand the application of standard rates in overhead costing.

Recognize the importance of revising standards in response to organizational or environmental changes.

Understand the principles and applications of variable and standard costing systems.

Calculate and analyze sales price, sales volume, and overhead variances.

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Definitions:

Proprietorships

Proprietorships, or sole proprietorships, are businesses owned and operated by a single individual, with no legal distinction between the owner and the business entity.

Limited Liability

The liability of the owners of a corporation is limited to the value of the shares in the firm that they own.

Proprietorship

An unincorporated business firm owned by just one person.

Corporation

A legal entity that is separate from its owners, offering limited liability to its shareholders, and having the ability to enter into contracts, loan and borrow money, sue and be sued.