How Does Globalization of Business Benefit Shareholders of an Organization

question 24

Multiple Choice

How does globalization of business benefit shareholders of an organization?

• A) Through easier and faster international travel
• B) Through the elimination of diseases in developing nations
• C) Through increased and improved profitability
• D) Through lower taxes between trade partners
• E) Through more distinct cultural heritage

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Definitions:

Break-even

The situation in which complete costs equate to total revenues, achieving a break-even point with no gains or losses.

Unit Sales

The number of individual units sold by a company during a specific period.

Degree of Operating Leverage

A measure of how sensitive a company's operating income is to a change in sales, indicating the extent to which fixed costs are used in the production process.

Unit Variable Cost

The cost associated with producing one additional unit of a product, encompassing both materials and labor.