Which of the Following Is Not a Possible Reason Why

question 6

Multiple Choice

Which of the following is not a possible reason why Uber opted to expand its on-demand transportation services into foreign markets?

• A)To build the profit sanctuary necessary to wage guerrilla offensives against global challengers endeavoring to invade its home market
• B)To achieve lower costs and enhance the firm's competitiveness
• C)To capitalize on company competencies and capabilities
• D)To gain access to new customers in new markets
• E)To spread its business risk across a wider geographic market base

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Definitions:

Levered Firms

Companies that use debt in their capital structure alongside equity.

Unlevered Firms

Companies that operate without the use of borrowed money or debt in their capital structures.

Interest Tax Shield

A reduction in taxable income that results from deducting interest payments, decreasing overall tax liability.

Debt-Equity Ratio

A financial indicator showing the relationship between borrowed funds and equity in a company's asset financing.