A Computer Firm Has High Foreign Sales in Asia and Wants

question 49

Multiple Choice

A computer firm has high foreign sales in Asia and wants to expand sales into Europe.Which of the following statements provides the most appropriate advice for Elway executives?

• A) Although countries' market sizes differ, companies usually face about the same number of competitors in each national market.
• B) In most industries, companies face the same competitors in each country where they operate.
• C) It takes about the same amount of resources to gain national distribution in one country versus another.
• D) Being a leader in one country does not guarantee market leadership in another country.

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Definitions:

Inventory Increase

An rise in the quantity or value of goods held by a company for the purpose of sale in the normal course of business.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly involved in creating the good.

Accounts Payable Decrease

A reduction in the amount a company owes to its suppliers or vendors, indicating payments have been made.

Direct Method

A approach to cash flow statement preparation where actual cash receipts and payments are reported, instead of adjusting net income.