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:

Discount Rate

The discount rate is the interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Salvage Value

The predicted remaining value of an asset at the termination of its functional life.

Working Capital

The amount by which current assets exceed current liabilities, indicating the liquidity level available to a business for day-to-day operations.

Salvage Value

The calculated resale value an asset holds once it ceases to be useful.