Which of the Following Is Not a Typical Reason for a Company

question 4

Multiple Choice

Which of the following is not a typical reason for a company to expand into the markets of foreign countries?

• A) gaining access to new customers
• B) strengthening its capability to employ offensive strategies,especially those that involve preemptive strikes
• C) achieving lower costs and enhance the firm's competitiveness
• D) capitalizing on company competencies and capabilities
• E) spreading business risk across a wider geographic market base

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Definitions:

Formal Journal Entry

A written record in the books of accounts that documents a business transaction systematically.

Stock Warrants

A form of derivative that gives the holder the right, but not the obligation, to buy a company's stock at a specific price before the warrant expires.

Intrinsic Value Method

A method of valuing a company or its stock by determining the present value of its expected future earnings or cash flows, disregarding current market conditions.

Stock Appreciation Rights

A type of employee compensation linked to the increase in the price of the company's stock over a set period.