An Approach to Developing an Expatriate Compensation Package That Involves

question 35

Multiple Choice

An approach to developing an expatriate compensation package that involves giving the expat a predetermined amount of money and letting the individual make his/her own decisions regarding how to spend it is referred to as the:

• A)Localization approach
• B)Cafeteria approach
• C)Lump-sum method
• D)Balance-sheet approach

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Definitions:

Common Size Income Statements

A financial statement in which all line items are expressed as a percentage of revenue, allowing for easy comparison across companies and time periods.

Revenues

The aggregate revenue from selling goods or providing services which constitute the core business activities.

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Financial Ratios

Quantitative measures derived from financial statement analysis used by investors and analysts to evaluate a company's financial health and performance.