Which of the Following Is NOT TRUE of the Impact

question 78

Multiple Choice

Which of the following is NOT TRUE of the impact of globalization on domestic markets?

• A) Study of manufacturing companies found that multinationals of all sizes and in all industries outperformed their strictly domestic U.S. counterparts.
• B) Profit levels from international ventures exceed those from domestic operations for many multinational firms.
• C) On average, firm value is increased by global diversification.
• D) Companies with foreign operations find that foreign earnings are making an important overall contribution to total corporate profits.
• E) Companies with only domestic markets have found it relatively easy to sustain their customary rates of growth.

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Definitions:

Renovation Expense

Costs incurred in updating or restoring the physical condition of a business asset to increase its value or extend its life.

Straight-Line Depreciation

A method of calculating the depreciation of an asset which assumes the asset will lose an equal amount of value each year over its useful life.

Operating Expenses

are the costs involved in running a business that are not directly tied to the creation of a product or service, such as rent, utilities, and administrative salaries.

Cash Sales

Transactions where payment for goods or services is made at the time of sale in cash or its equivalent.