Primo Is a Multinational Enterprise Based in California That Manufactures

question 74

Multiple Choice

Primo is a multinational enterprise based in California that manufactures and sells affordably priced athletic shoes in retail stores around the world.A Primo manufacturing subsidiary in China employs over 20,000 locals.Primo executives recently learned of human rights violations at the firm's China subsidiary.Workers had been forced to work more than 60 hours each week and minimum wage laws were regularly ignored.As a result, Primo executives need to decide if operations in China should be discontinued.Which of the following, if true, would best support a decision by Primo to remain in China?

• A)Primo becomes SA8000 certified.
• B)Sales of Primo's competitors drop sharply.
• C)U.S. manufacturing jobs decrease in number.
• D)More service sector jobs become available in China.

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Definitions:

Purchase-Money Security Interest

A legal claim that allows a lender to repossess or foreclose on property if the borrower fails to repay a loan used to purchase the property.

Collateral

Assets pledged by a borrower to secure a loan or credit, which can be seized by the lender if the borrower fails to make required payments.

Secures

Generally refers to providing protection or ensuring the enforcement of a legal agreement, often involving financial assets as collateral.

Ordinary Course

Actions and transactions that are considered normal or routine within the scope of a business's operations or an individual's usual undertakings.