In the Context of International Business Negotiations, Even Small Companies

question 52

Multiple Choice

In the context of international business negotiations, even small companies can possess great power in negotiations if they have:

• A) no influence at headquarters.
• B) a larger negotiating team.
• C) more to lose and less to gain from a deal.
• D) many good alternatives and their large-company counterparts do not.
• E) the advantage of negotiating in a foreign land.

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Definitions:

Credit Sales

Sales in which the customer is allowed to pay at a later time, typically generating accounts receivable on the balance sheet.

COGS

Cost of Goods Sold; the direct costs attributable to the production of the goods sold by a company, including materials and labor.

Payables Turnover Rate

A financial ratio indicating how efficiently a company pays its suppliers, calculated by dividing total purchases by average accounts payable.

Accounts Payable Balance

The total amount of money that a company owes to its suppliers or creditors for items or services purchased on credit.