Starbucks Is Expanding Its Global Operations into South America in Spite

question 93

Multiple Choice

Starbucks is expanding its global operations into South America in spite of the real probability of civil wars and terrorist activities in many of the continent's nations. As Starbucks expands into South America, it must deal with ____.

• A) political uncertainty
• B) economic uncertainty
• C) infrastructure regulation
• D) nationalistic equity
• E) strategy risk

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Definitions:

Transactions

Economic events that require recording in the financial statements because they affect assets, liabilities, or equity.

Normal Balance

The side (debit or credit) of an account that is increased, reflecting the account's natural balance.

Asset Account

An account that records the value of assets owned by a company, such as cash, inventory, and equipment.

Financial Statement

A record that details the financial activities and conditions of a business or individual, commonly including the balance sheet, income statement, and cash flow statement.