Explain the Differences Between an Integrated Foreign Operation and a Self-Sustaining

question 12

Essay

Explain the differences between an integrated foreign operation and a self-sustaining foreign operation.

---

Definitions:

Interest-Bearing Note

A debt instrument that specifies the amount borrowed, interest rate, and maturity date, obligating the borrower to pay interest.

Bond

A form of interest-bearing note used by corporations to borrow on a long-term basis.

Times Interest Earned Ratio

This ratio measures a company's ability to meet its debt obligations based on its current income, calculated as earnings before interest and taxes divided by interest expense.

Income Before Taxes

The amount of revenue left after deducting all operating expenses, interest, and depreciation, but before paying income taxes.