A Local Presence May Be Necessary When Exporting Information-Based Services

question 24

Multiple Choice

A local presence may be necessary when exporting information-based services for which of the following reasons?

• A)Appeasing local citizens.
• B)Conducting secondary research.
• C)Building personal relationships.
• D)Bargaining for cheaper facilities.
• E)Restructuring out of date systems.

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Definitions:

Goodwill Impairment

A charge that occurs if the value of goodwill on a company's balance sheet exceeds the tested fair market value.

Gain on Sale

The profit realized from the sale of an asset when the selling price exceeds the asset's book value at the time of sale.

Consolidated Income Statement

A income statement that combines the financial performance of all subsidiaries with the parent company, eliminating intercompany transactions.

Income Tax Rate

The proportion of income that is taken from a person or business in the form of taxes.