A Firm That Enters Many Markets at Once

question 51

Multiple Choice

A firm that enters many markets at once

• A)runs the risk of spreading its limited management resources too thin.
• B)becomes established in all the markets.
• C)gets the time to learn about each market.
• D)has fewer export opportunities.
• E)reduces the costs of any subsequent failure.

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Definitions:

Tax Rate

The proportion of their earnings or profits that entities or individuals are required to pay to the government in the form of taxes.

Fixed Assets

Long-term tangible assets, such as buildings, machinery, and equipment, that are used in the operations of a business and are not expected to be consumed or converted into cash within a year.

Inventory

The inventory of products and materials maintained by a business for selling or manufacturing purposes.