IBM Is the World's Largest Information Technology Company with More

question 104

Multiple Choice

IBM is the world's largest information technology company with more than 300,000 employees in 170 countries. It once had a country-based structure but reorganized into industry groups to compete more effectively in the global marketplace. IBM is best described as a __________ organization.

• A) transnational
• B) multidomestic
• C) regional
• D) virtual
• E) global

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Definitions:

EBIT

Earnings Before Interest and Taxes - a measure of a firm's profitability that excludes interest and income tax expenses.

Accounts Payable

Accounts Payable is the amount of money a company owes its suppliers for goods or services received but not yet paid for.

Basic Earning Power Ratio

A financial ratio that shows how effectively assets are being used to generate earnings before the influence of taxes and financing costs.

Times-Interest-Earned Ratio

A measure of a company's ability to honor its debt payments, calculated by dividing earnings before interest and taxes (EBIT) by interest expenses.