Which of the Following Items Is an Advantage of International

question 119

Multiple Choice

Which of the following items is an advantage of international expansion for an FI?

• A)An FI faces the political risk that a change in government may lead to the nationalization of fixed assets.
• B)A global FI must master the rules and regulations of each market in which it operates.
• C)The fixed costs of establishing overseas organizations may be very high in certain markets.
• D)International expansions allow an FI to maintain contact with and provide service to the needs of domestic multinational corporations.

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Definitions:

Aging Process

A method used in accounting to categorize accounts receivable according to the length of time an invoice has been outstanding.

Accounts Receivable

Funds that are expected to be received by a company from its customers who have purchased goods or services on credit, essentially representing a line of credit extended by the business and recorded as an asset.

Income Statement Approach

The Income Statement Approach is a method used in accounting to create the income statement by focusing on revenues, expenses, and income to determine the net profit or loss for a period.

Direct Write Off Method

A method to account for bad debts by directly writing off specific invoices determined to be uncollectible.