Bob Has Been Interested in This Trend of Globalization

question 20

Multiple Choice

Bob has been interested in this trend of globalization.He should know that globalization occurs when an organization:

• A) increases its connectivity with people and organizations in other parts of the world.
• B) serves diverse customers within the firm's home country.
• C) has a diverse workforce within the firm's home country.
• D) the firm has a substantially strong domestic market.
• E) the firm works in a country with strict foreign trade policies.

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Definitions:

Net Sales

Total revenues from sales transactions minus returns, allowances, and discounts.

Allowance Method

A method of accounting for bad debts that involves estimating and recording uncollectible accounts receivable as an expense.

Write-Off

An accounting action whereby the value of a bad debt or an asset is reduced to zero, acknowledging it as a loss.

Average Collection Period

The average time it takes for a company to receive payments from its customers.