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Which of the Following Is Not a Primary Factor That

question 39

Multiple Choice

Which of the following is not a primary factor that a large firm with international operations should consider when choosing the appropriate structure for its organization?

Understand how quantity demanded and quantity supplied are affected by changes in price controls.
Grasp the equilibrium concept in market economics and how it is achieved or altered by external interventions.
Describe the relationship between supply and demand curves and price determination.
Recognize the mechanisms of price and nonprice rationing in allocating scarce resources.

Definitions:

Variable Costs

Costs that change in proportion to the level of activity or volume of goods produced.

Straight-Line Depreciation

An approach to apportion the cost of a tangible asset throughout its operational life in equal yearly sums.

Net Present Value

A financial calculation used to determine the value of a series of future cash flows by discounting them back to their value in today's dollars.

Required Rate Of Return

The minimum annual percentage earned by an investment that will induce individuals or companies to put their money into a particular security or project.

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