Companies Such as GM,GE,and Motorola Have Facilities in China and India

question 29

Multiple Choice

Companies such as GM,GE,and Motorola have facilities in China and India mainly because of the ______.

• A)tax incentives
• B)well-established Infrastructure
• C)lower labor costs
• D)availability of natural resources

---

Definitions:

Net Income

The company's net profit, calculated by subtracting all costs and taxes from its overall revenue.

Net Loss

The amount by which total expenses exceed total revenues for a specific period, indicating a reduction in equity.

Accruals

Accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash transaction takes place.

Unrecorded Expense

An expense that has been incurred but not yet documented or reported in the accounting records.