Acquiring an Existing Firm Operating in a Foreign Country Rather

question 2

Multiple Choice

Acquiring an existing firm operating in a foreign country rather than undertaking internal development may be the least risky and cost-efficient means of overcoming entry barriers such as

• A) gaining access to local distribution networks,building supplier networks,and establishing working relationships with key government officials.
• B) moving directly to the task of transferring resources and personnel,and integrating and redirecting activities into the acquiring firm's operation.
• C) putting the acquiring firm's strategy into place.
• D) accelerating efforts to build a strong market presence.
• E) All of these choices are correct.

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Definitions:

Budgeted Fixed Selling

Budgeted fixed selling refers to the predetermined set of expenses associated with selling a product that do not change with sales volume.

Estimated Cost

A forecast or approximation of the expenses associated with a project, product, or service.

Goods Sold

The total number of products or services that a company sells during a specific period.

Cash Balance

The amount of cash held by a company at a given point in time.