The Advantages of Using an Export Strategy to Build a Customer

question 15

Multiple Choice

The advantages of using an export strategy to build a customer base in foreign markets include

• A)being able to minimize shipping costs,avoid tariffs,and curb the effects of fluctuating exchange rates.
• B)minimizing capital requirements and involvement in foreign markets.
• C)being cheaper and more cost effective than licensing and franchising.
• D)being cheaper and more cost effective than a multicountry strategy.
• E)facilitating the establishment of profit sanctuaries in foreign countries and being more suited to accommodating local buyer tastes than a global strategy.

Comprehend the conditions under which a deferred tax asset is considered impaired.

Grasp the concept of intraperiod tax allocation and the scenarios requiring its application.

Relate deferred tax assets to the essential characteristics of assets as defined in the FASB Conceptual Framework.

Prepare journal entries to adjust deferred tax balances due to changes in income tax rates.

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Definitions:

Treasury Shares

Shares that were issued and subsequently reacquired by the issuing corporation, but not retired, reducing the amount of outstanding stock on the open market.

Adjusted Book Value

An asset's book value after accounting for factors like depreciation, amortization, or impairment that affect its original cost.

Primary Beneficiary

The main individual or entity designated to receive the benefits from a will, trust, insurance policy, or financial plan.

Controlling Financial Interest

An interest in a business that gives the holder the power to direct its financial and operating policies, often through ownership of a majority of voting shares.