One of the Most Important Factors in Forming a Successful

question 11

True/False

One of the most important factors in forming a successful joint venture in China is guanxi.

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Definitions:

Profit Margin

A metric in finance that reveals the percent of sales revenue that remains after deducting the cost of goods sold, illustrating the profit-making ability of a business.

Transfer Price

The price at which goods and services are sold between departments or divisions within the same company or between affiliated companies.

Variable Cost

Costs that vary in direct proportion to changes in levels of output or activity, such as raw materials and direct labor.

Total Income

The sum of all revenues and gains a company earns during a period, before any deductions are made.