Which of the Following Statements About Exporting Is NOT TRUE

question 249

Multiple Choice

Which of the following statements about exporting is NOT TRUE?

• A) Intermediaries can handle the arrangements as products are shipped outside the country.
• B) Channel relationships in international markets take time to build and shouldn't be treated lightly.
• C) Exporting requires a firm to establish permanent relationships with international partners.
• D) A firm often invests a minimum amount of time and money.
• E) None of these; i.e. all of these statements about exporting are TRUE.

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Definitions:

Cost of Capital

The minimum profit rate a company needs to achieve on its investment ventures to keep its market value stable and draw in capital.

Cash Inflows

Money received by a business from various sources including sales, investments, and financing.

Useful Life

The estimated period over which an asset is expected to be used by the entity, or be productive.

Salvage Value

The projected sell-on value of an asset upon reaching the end of its operational lifespan.