What Is the Implication for a Manufacturer of Electrically Powered

question 135

Multiple Choice

What is the implication for a manufacturer of electrically powered equipment contemplating international operation upon learning of the wide variety of electric outlets around the world?

• A) Modify the product to meet the standards of different countries
• B) Deal with independent agents
• C) Delay international operations until the currency exchange rate is favourable
• D) Drop the idea of international operation
• E) None of these

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Definitions:

GAAP Standards

Generally Accepted Accounting Principles (GAAP) are a collection of commonly followed accounting rules and standards for financial reporting.

Planning and Control Tool

Instruments or techniques used in the management process to set objectives, assess future trends, and oversee progression towards desired outcomes.

Acid-Test Ratio

A financial metric used to determine a company's short-term liquidity situation by comparing its most liquid assets, excluding inventory, to its current liabilities.

Current Assets

Short-term assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle, including cash, inventory, and receivables.