Imagine That You Are the Manager of an Aspiring Multinational

question 66

Essay

Imagine that you are the manager of an aspiring multinational social media company. Identify and briefly explain two ways that your company could expand outside your domestic market to improve overall competitiveness.

Understand the unethical practices in business competition including economic espionage.

Familiarize with laws designed to protect consumer rights including children's privacy and safety.

Understand the principles of the Fama-French Three Factor Model and its application in calculating expected stock returns.

Grasp the concept of the Arbitrage Pricing Theory (APT) and the assumptions underlying multifactor models.

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Definitions:

Net Working Capital

Net working capital is a measure of a company's liquidity, calculated as the difference between its current assets and current liabilities.

Inventory

The total amount of goods and materials held by a business to be sold or used in production, including raw materials, work-in-progress, and finished goods.

Accounts Payable

Financial obligations that a company has to its vendors, recorded as liabilities on the company's balance sheet.

Accounts Receivable

Amounts receivable by a firm for goods or services rendered to customers, awaiting payment.