Darren Bloom,the Sales Manager for John Fountain Products,a Small Family

question 71

Multiple Choice

Darren Bloom,the sales manager for John Fountain Products,a small family business,is eager to get the company on an export path.The CEO of the company is not convinced,however.To convince the CEO,Bloom should point out that firms that do not export often

• A)face problems of currency conversion.
• B)lose out on significant opportunities for cost reduction.
• C)are able to reduce their unit costs.
• D)are not intimidated by the business practices of foreign countries.
• E)explore foreign markets to see where they can leverage their technology.

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Definitions:

Investment Opportunities

Investment Opportunities refer to avenues or instruments that offer potential for financial return, such as stocks, bonds, real estate, or other assets.

Profitable Projects

Initiatives undertaken by a business that are expected to generate earnings exceeding their costs.

Clientele Effect

A theory suggesting that certain stocks attract particular types of investors based on dividend policies or investment strategies.

Residual Dividend Policy

A policy where dividends paid to shareholders are set based on the earnings left over after all operational and expansion-related expenses are covered.