Which of the Following Is an Advantage of a Company

question 69

Multiple Choice

Which of the following is an advantage of a company with an international area structure?

• A) Country managers have very little authority.
• B) The subsidiaries fail to develop organizational cultures suited to their locations.
• C) Individual responsibility and accountability is foggy.
• D) When general managers become experts on the unique needs of their buyers.

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Definitions:

Credit Sales

Transactions in which goods or services are provided to a customer with an agreement to pay later.

Bad Debt Expense

An expense account reflecting the cost of accounts receivable that a company does not expect to collect and has written off.

Allowance Method

An accounting technique used to estimate uncollectible accounts receivable and record bad debts expense.

Percent of Sales Method

A financial forecasting technique that estimates certain balance sheet and income statement items as a fixed percentage of projected sales.