Which of the Following Statements Is True of the Impact

question 59

Multiple Choice

Which of the following statements is true of the impact of terrorism within a country on multinational companies in the macro sense?

• A) Typically, terrorists target business areas or businesses that have low status or those that have little influence on initiating change.
• B) It is extremely difficult to guarantee that companies can fully avoid harm from terrorism, but political risk analysis and preparation may forestall it.
• C) Companies are usually proactive and confident about setting up operations even if a country has a high incidence of terrorist attacks against commercial businesses.
• D) Most attacks on private businesses are driven by well-trained, professional, underground members who pursue a specific, well-defined objective.

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Definitions:

Long Run

A period in economics in which all factors of production and costs are variable, allowing for full adjustment to changes.

Total Revenue

Total revenue is the total income generated by a company from its sales of goods or services before any expenses are subtracted.

Total Cost

The sum of all costs incurred in the production of goods or services, including both fixed and variable costs.

Profit-Maximizing

A strategy where a firm adjusts its production and pricing to achieve the highest possible profit.