One of the Big Common Mistakes by Corporations Sending Executives

question 25

Multiple Choice

One of the big common mistakes by corporations sending executives on global assignments is

• A) not raising their salaries.
• B) not educating executives about customs and values in other countries.
• C) not providing training for the regulatory environment.
• D) not providing excellent health care.
• E) not giving executives the opportunity to visit home.

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Definitions:

Fixed Cost

Fixed cost refers to expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Sunk Cost

Expenditures that have already been incurred and cannot be recovered, which should not affect future decision-making.

Opportunity Cost

Represents the benefit that is missed or given up when an investor, individual, or business chooses one alternative over another.

Ticket Price

The cost associated with purchasing a ticket to gain entry to an event, performance, or mode of transportation.