Which of the Following Statements Is True of Universal Standards

question 4

Multiple Choice

Which of the following statements is true of universal standards in the sale of international products?

• A) The idea of universal standards has been resisted in developing countries.
• B) Firms that adhere to universal standards find the costs to be greater than the benefits.
• C) The international market for industrial goods uses the metric system as a universal standard.
• D) Most governments mandate universal standards.
• E) The lack of universal standards limits the expansion of an industry.

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Definitions:

Investee

An entity in which an investor holds a minority stake, without controlling interest.

Decision-making Authority

The power or right to make decisions regarding policies, procedures, or spending in a business or organization.

Agent

A party primarily engaged to act on behalf of and for the benefit of another party or parties (the principal(s)) which therefore does not control the investee when it exercises its decision-making authority.

Variable Returns

Returns from an investment that fluctuate over time due to market conditions or other factors.