Consider Firm a and Firm B That Both Produce the Same

question 58

Multiple Choice

Consider Firm A and Firm B that both produce the same product. Firm A would more likely have more stable cash flows if its percentage of foreign sales were ____ and the number of foreign countries it sold products to was ____.

• A) higher; large
• B) higher; small
• C) lower; small
• D) Higher; large

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Definitions:

Electromagnet

A type of magnet where the magnetic field is produced by an electric current, typically through a wire wound into a coil around a magnetic core.

Magnetic Field

An invisible field around magnetic materials where magnetic forces are exerted and can be detected by other magnetic materials or moving electric charges.

North Magnetic Pole

The point on the Earth's surface where geomagnetic field lines are directed vertically downwards, the opposite of the Geographical North Pole.

Compass Needle

A magnetized pointer free to align itself with Earth's magnetic field, used in compasses for navigation.