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.

Describe the various motives behind company mergers.

Understand the differentiation among types of mergers.

Recognize the economic and operational advantages of mergers.

Identify reasons for mergers and their success or failure.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to cover its short-term obligations with its current assets.

Long-Term Debt

Debt that is due for payment after more than one year, often used for financing or expanding the company.

Accounts Receivable

The total due to a business from its customers for goods or services which have been issued or consumed, but not yet compensated.

Seasonal Merchandise

Products that are popular, selling, or in demand during specific seasons or periods of the year.