Firms That Pursue Which of the Following Strategies Focus on Increasing

question 5

Multiple Choice

Firms that pursue which of the following strategies focus on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale, learning effects, and location economies?

• A)International
• B)Transnational
• C)Localization
• D)Global standardization
• E)Nationalization

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Definitions:

Debt/Equity Ratio

The ratio that highlights the proportional use of debt and shareholders' equity in asset financing for a company.

Stripped Common Shares

Common stock on which dividends and capital gains are repackaged and sold separately.

Dividends

Payments made by a corporation to its shareholders, usually derived from the company's profits, as a reward for investing in the company's equity.

Capital Gains

Capital Gains are the profits realized from the sale of assets such as stocks, bonds, or real estate, which exceed the purchase costs.