Which One of the Following Explains Why So Few Firms

question 71

Multiple Choice

Which one of the following explains why so few firms are global?

• A) Culture, language, and religion are similar between countries.
• B) Legal and political systems are similar between countries.
• C) Governments are increasing trade restrictions in general.
• D) Geographic distance is multiplied by distance in culture, language, religion, and legal and political systems.

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Definitions:

Net Operating Income

A measure of profitability that calculates how much revenue exceeds the operating expenses of a company, excluding taxes and interest.

Average Operating Assets

The average value of the assets that are used in the normal course of business operations, calculated over a specific period.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment, expressed as a percentage of the investment's gain relative to its cost.

Minimum Required Rate

The lowest acceptable rate of return on an investment, often used in capital budgeting to assess the feasibility of projects.