One of the Highest Costs of Doing Business in China

question 86

Multiple Choice

One of the highest costs of doing business in China is the:

• A) money required for the transportation of the goods.
• B) amount of money and time required for obtaining the appropriate permits.
• C) cost of local advertising.
• D) capital required to maintain effective distribution.
• E) cost of customizing the products for the Chinese market.

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Definitions:

Current Assets

Assets that can be converted into cash or used within one year or the normal operating cycle of the business, whichever is longer.

Common-Size Statements

Financial statements that are expressed as a percentage of a certain figure, allowing for easier comparison across time periods and companies by standardizing the data.

Percentage Of Change

A mathematical calculation used to determine the percentage increase or decrease of a value over a period of time.

Quick Assets

Those assets— mainly cash, accounts receivable, and notes receivable—that can be easily turned into cash.