Which of the Following Is a Major Disadvantage of the Product

question 60

Multiple Choice

Which of the following is a major disadvantage of the product life-cycle theory introduced by Vernon?

• A) The theory's arguments seem ethnocentric and increasingly dated.
• B) The theory failed to explain the dominance of developed nations.
• C) The theory applies only when a poor nation invents a new product.
• D) The theory cannot be used to explain the production of luxury products.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets, calculated as current assets divided by current liabilities.

Acid-Test Ratio

An economic indicator assessing the capability of a business to fulfill its immediate liabilities using its most liquid assets, without counting inventory.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its credit customers.

Current Ratio

A measure of a company’s capability to settle short-term debts using its current assets.