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:

Accounts Payable Turnover

A financial efficiency ratio that measures how quickly a firm pays off its suppliers by dividing total purchases by average accounts payable.

Times

This term in a financial context often relates to ratios, such as the "times interest earned" ratio, which measures a company's ability to meet its debt obligations based on its earnings before interest and taxes.

Compensating Balance

A minimum account balance that a borrower must maintain as a condition for a bank loan, often to compensate the bank for extending credit.

Interest Rate

Interest Rate is the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.