A Business Shows the Following Figures for the Current Financial

question 15

Multiple Choice

A business shows the following figures for the current financial year (all amounts in $millions) :
$$\begin{array} { l r } \text { Total sales } & \$ 38.0 \\\text { Operating profit } & \$ 12.0 \\\text { (a) Bad debts expense } & \$ 1.0 \\\text { (b) Interest expense } & \$ 2.0 \\\text { (c) Auditor's remuneration } & \$ 0.5 \\\text { (d) Repairs and maintenance expense } & \$ 2.5\end{array}$$ The items that are most likely to be considered as material are:

• A) (b) and (d)
• B) (a), (b) and (d)
• C) (b), (c) and (d)
• D) (a) and (b)

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Definitions:

Cross-cultural Adjustment

The process through which individuals adapt to and become more comfortable with the norms, values, and behaviors of a culture different from their own.

Cultural Knowledge

Understanding of the values, beliefs, practices, and social norms of different cultures, critical for effective cross-cultural communication.

Global Strategy

A strategy that involves planning and conducting transactions across national borders to meet the objectives of individuals and organizations on a global scale.

Culturally Sensitive

An approach that is aware of and respects the cultural differences and similarities between people without assigning them a value.