Which of the Following Is a Reason Why Companies Move

question 66

Multiple Choice

Which of the following is a reason why companies move into international operations?

• A) To take advantage of lower production costs in regions of inexpensive labor.
• B) To develop new markets for their finished products.
• C) To better serve their primary customers.
• D) Because important raw materials are located abroad.
• E) All of the above.

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Definitions:

Bad Debts Expense

Represents the amount of accounts receivable a business does not expect to collect and charges off as a loss in its financial statements.

Net Credit Sales

The total revenue from sales made on credit minus any returns or allowances.

Promissory Note

A fiscal device comprising a binding commitment from one party to another to remit a precise sum of money, which can be demanded anytime or on a predetermined date.

Merchandise

Goods that are bought and sold in business.