Globalization of Resource Markets Has Resulted in the Business Practice

question 5

Multiple Choice

Globalization of resource markets has resulted in the business practice of offshoring, which involves:

• A) Only an outflow of jobs away from the U.S.
• B) No possible expansion of jobs in the U.S.
• C) Huge losses to consumers in the U.S.
• D) Both an outflow as well as an inflow of jobs in the U.S.

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Definitions:

Percentage of Credit Sales Method

An accounting method used to estimate bad debt expense by applying a fixed percentage to the total credit sales of a period.

Credit Sales

Sales made by a business on credit, where payment is collected at a later date.

Bad Debt Expense

The estimated amount of receivables that a company does not expect to collect.

Uncollectible Account Receivable

A receivable that is considered unlikely to be collected, representing a loss to the company.